hi all
with the new HUD safe act, what is everyone doing with owner financing? Is it still wise to try to buy with owner financing? The new rule seems to mainly affect those selling with owner financing. Thanks for any suggestions!
eric
Under the proposed HUD regulation, homeowners who are selling their primary residence with seller financing will be exempt from the licensing requirement.
And for the others just hire a broker for a couple hundred bucks to do the paperwork and be done… This is a non issue…
Good Luck
Michael
But, even if you hire a broker, didn’t I read that no balloon payments are not permitted and that sort length loans aren’t permitted?
I’m not about to carry a mortgage for 15 years.
Don’t know where you read that, but the SAFE act only regulates mortgage originators, not the loan itself. At least that is what I am reading.
HUD specifically mentions that the rules do not apply to sellers wishing to offer seller financing. Check out this excerpt: “The commercial context implied by the taking of an “application” is also absent where an individual seller provides financing to a buyer pursuant to the sale of the seller’s own residence.”
amasters,
What you are reading is HUD’s proposed regulation that they will follow in implementing the law. The SAFE Act itself does not exempt homeowners selling their primary residence. It is HUD’s interpretation of the intent of the law that homeowners who finance the sale of their primary residence should be exempt.
It is reasonable to expect that HUD’s final regulation will exempt homeowners, but it is not a given that this will be the final language of the regulation that HUD implements.
New to this site, so first hello. Reading the HUD rules, seems that HUD has exempted owner occupied sellers to do one property in three years, non owner occupied owners (landlords, investors) need to see a mortgage originator. Seems too that those originated by the mortgage people will have to meet the rules for loans to be originated, meaning they can put in stipulations for the originators to follow. I read too that no balloon payment can be made until half the principal has been paid.