I am looking at putting in an offer on a 4 plex where the seller would carry back a loan, amortized over 30 years, and a balloon payment after 5 years. In this scenario, since a 4plex qualifies a residential unit, do Dodd Frank laws apply to the seller holding the mortgage for me? I just want to make sure they wouldn't be in trouble with any of the lending laws out there.
Thanks, I appreciate your help and the reference!
@Mike Mefferd I recently closed on a townhome in which the seller was inquiring me if I would be interested in seller financing. While I knew what seller financing was generally, I went ahead with conventional financing to play it safe. With that being said, I have since done research of seller financing and believe it could be a good option going forward, if the right opportunity presents itself. Would you mind sharing with me the details of the 4plex deal and how you came up with this deal? Did you feel that it was a good negotiation in which you had leverage or did the seller dictate a lot of the terms? Any and all information would be greatly appreciated, thanks!