Owner Financing and Manufactured Homes (Texas)

[Mariah Destruel]

Hello!

My mom and I are working together in our real estate investing journey and we're beyond excited. We've bought 2 mobile homes and they should be fixed up by the end of this weekend (a whole other experience learning to work with contractors). Anyway, we're wanting to help people own their own homes, but we're getting a lot of mixed messages.

For context, we're located in Texas. I've heard that "seller-financing" and "lease to own" is illegal, but "owner financing" is okay. Then I also hear that you can't do it at all, but I hear of people doing it all the time. I'm very confused. Any guidance would be very helpful! We have an interested tenant and he doesn't have enough to buy the home, but he'd like to own it and live by his veteran friends. We really want to help him. We could go the renting route, but he'd prefer to own it after a few years. What is actually legal to do? And, any guidance on what contract we should refer to or use would be VERY helpful. 

Thank you in advance for your insight!

[Guy Gimenez]

@Mariah Destruel

OCCUPATIONS CODE (TEXAS)

SUBCHAPTER C. LICENSING

Sec. 1201.101. License Required.

(a) A person may not construct or assemble in this state or ship into this state a new HUD-code manufactured home unless the person holds, at the time the home is constructed or assembled, a manufacturer's license.

(b) Except as otherwise provided by this chapter, a person may not sell or exchange, or or offer to sell or exchange, two or more manufactured homes to consumers in this state in a 12-month period unless the person holds a retailer's license.


Sec. 1201.102. Exceptions to License Requirement.

(c-1) An individual who is listed as an owner, principal, partner, corporate officer,
registered agent, or related person of an entity that is licensed as a retailer or broker
may act on behalf of that license holder in the capacity of a retailer, broker, or
salesperson without holding the appropriate license if at least one individual who is
listed as an owner, principal, partner, corporate officer, registered agent, or related
person of the entity has satisfied the requirements of Sections 1201.104 and
1201.113.