Hard Money and Dodd Frank
Hi All –
I know another DF question. I looked and cannot find a thread with this questions. So please have some patience and provide what you know about the following strategy.
I'm considering the hard money lending business for single family residential homes. 1) I will not own the "dwelling" or residence 2) The buyer/borrower will not be residing in the residence supported by an occupancy affidavit in the loan package stating the home will not be non-owner occupied, notarized 3) The money I lend will be secured by the dwelling/property and I will be in 1st position on the lien. Basically the folks I'm lending my money to have enough of a down payment plus my loan to purchase the home outright. I will collect interest only payments for 3 to 5 years maximum (the loan can be paid in full at anytime without penalty) but at the end of the terms it must be paid be in full - balloon.
Will these loans need to comply with Dodd Frank?
Thank you,
Jason