The latest skinny on Dodd Frank and the Safe Act
If you are an individual you can owner finance one deal per year, If you are married your wife can likewise owner finance one deal per year. If you are a trust you can do one deal per year. If you are an LLC or some other corporate entity you can do 3 deals per year. If you are married and your wife has a separate LLC she can do 3 deals per year
and all this is with regards to only owner occupant. If you sell to investors Dodd Frank and the Safe Act do not apply. ONLY TO SOMEONE WHO IS GOING TO OCCUPY THE PROPERTY OR HOUSE AT THEIR PRIMARY RESIDENCE.
After the 3 deals per year if you want to do more than 3 per year then and only then do you have to either be licensed or hire a licensed loan originator. However unlike some are thinking there is a process you can still be the owner financier just not be the Loan originator and you have to document a buyer's ability to pay using DTI and other means of proving the borrower can in effect pay for the loan. You cannot have a Balloon payment requirement in the loan in the 3 deal per year rule but you can on the one single deal per year.
Let me know if you understand this any different as I got this from my attorney. Allot of people have been mentioning that the limit is 5 per year but that is not what my attorney says.