seller financing to home occupant - Dodd-Frank
Good afternoon,
I've been reading a lot on this site and elsewhere about Owner/Seller financing as it pertains to Dodd-Frank, but I can't seem to find an answer for this situation (either that or don't want to believe the answer). Scenario:
- 1. I have a rental in Tampa, it is owned free and clear the home is in the name of one of my LLC's.
- 2. My current tenant has been in place and paying rent for 3 1/2 years and has requested to purchase the home.
- 3. Tenant doesn't qualify for conventional lending, so they would like owner financing.
I would love to loan them the money but I only want to lend my money for 5 years. The perfect scenario would be to offer them a 30 year term so their monthly payment isn't so high that they can't offered it. That said, Dodd-Frank and the "no balloon" clause is causing some concern. Did I understand the regulation correctly? A Seller that finances the purchase of one of their rental properties to a buyer occupant can't require a full payment in 3, 5, 7 yrs?
Does anyone know how I can make both myself and the tenant happy here?
Any input would be greatly appreciated.
Raul.