Real Estate Agent · Bradenton, FL · Member since 2015 · 1 post · 0 votes
If someone is purchasing a home for their parents to live in, seller is holding the mortgage, as investor the Dodd Frank rule doesn't apply. Would Dodd Frank apply if the parents are on the purchase contract as buyers, but not on mortgage? I guess the question really boils down to- Does Dodd Frank look at resident status of buyer's of property or the residency status of the "Mortgagor" buyer?
JD, CCIM , Real Estate Broker · Tuscaloosa, AL · Member since 2014 · 1k+ posts · 1k+ votes
8y
Dodd Frank looks at the the status of the borrower as a consumer, and the use of the property as a dwelling. Investors are not consumers.
Are you saying child is buying a piece of residential property as an investment, with seller holding the financing, but instead of strangers as tenants, the parents will be the tenants? That does not change the investment nature of the property. If parents were living there rent free, or if parents provided the money for the down payment, that might be a different matter.