Absolutely, brokers and licensed lenders can make such loans, not individuals or other entities who are not in the business of lending or regulated as such.Know too that points are pre paid interest which for an individual may not be authorized or may push the APR to be an issue of usury.Maybe not years of study, best just to get with a broker or lender as David suggested, learn from them. :)

Get a good understanding of closing costs, prepaid escrows, etc.

One other thing, you may want to bump up the money on the down payment as that is just 25% of the mortgage, you may need 2.5% of the property expense in addition to the down payment amount for things like closing costs and pre-paids.

In general, points are considered prepaid interest, so 10% plus 1% is more than 10% interest.

When those business relationships get sticky, the personal impact can be exponential.While both of you may want to help this guy with a place to live, I would say do not expose yourself to that level of risk and jeopardize your relationship with your manager for a few months of pre-paid rent.If he has that kind of money (I'm curious to know the source… is it student loan funds?)

She also prepaid her rent for the whole year.

I have also seen it as being the Fannie 30 year fixed PAR rate without any discount.Speaking of interest, all should know points are pre paid interest and equity loans generally are barred from charging points and left to cash funded loans by registered lenders.I totally agree that those who may seek to do financing under any exemption tread carefully as regardless of any exemption to the SAFE Act, you are not exempt from other loan compliance issues, it's not a license to return to the wild west.

Points are prepaid interest.

It looks like he is selling the house by option for a higher price than he is buying the house for and charging the seller "initial investment" to make the spread or to be prepaid for the equity by the seller.

Your $8k closing costs seem low, including your prepaids, verify them.