Dodd Frank Compliance, Seller Financing

[Bob Denkers]

Hello All
I am trying to get info on seller financing and what i need to do as a seller who wants to provide seller financing without getting in trouble because of Dodd Frank or something else. i have a home(titled in my c corp) in escrow in California i am providing $255k seller financing at 9% interest amortized over 30 due in 4 years. I had 1 other i financed in 2020 but has since been refinanced so have none currently. Looking to seller finance my portfolio to retire maybe 2-3 per year. Any help is appreciated

[Randy Rodenhouse]

If you sell a house that you live in as primary residence then typically there is a one time exclusion.  If this is an investment property then you have to follow the Dodd Frank rules.  I noticed you said "due in 4 years".  Well part of Dodd-Frank you cannot have a balloon. It must be a fixed rate for the first 5 years and cannot have a balloon.  The other big thing with Dodd Frank is demonstrating the "ability to pay" which is simply getting documents from buyer showing that they have the income to make the payments, etc.  Let me know if any additional questions.