Owner Financing and Real Estate Laws in Texas

[Bonnie Jones]

Can anyone give me insight on how YOU work with the real estate laws that limit OWNER FINANCING in Texas when buying and selling properties?

I saw this article that says that you must have a special license to be able to sell with owner finance, and there are other restrictions. They are also limiting lease-option too. Can you tell me how YOU work with all of that?

https://lonestarlandlaw.com/owner-finance-in-texas-residential-sales-transactions/

[Collin Corrington]

I've been witness to 100's of owner finance deals here in San Antonio.  Yes, there are some laws that you must be aware of.  

Simply put, you need to prevent any predatory lending. So, ability to repay is something that must be very well documented.   You can do 1 deal a year on your own without any help on the back of a bar napkin if you'd like.  But after that you fall into the same category as a bank.  

My advice, get an RMLO that understands what you're trying to do. Use a RMLO everytime!  And listen to them!  Then, have a well defined set of underwriting guidelines that you follow to stay consistent. 

If you need an RMLO recommendation I have a great one.