{"id":21,"date":"2013-12-03T17:38:54","date_gmt":"2013-12-03T17:38:54","guid":{"rendered":"http:\/\/www.loanshoppers.net\/blog\/?p=21"},"modified":"2017-04-15T02:43:16","modified_gmt":"2017-04-15T02:43:16","slug":"do-the-new-restrictions-on-investors-help-borrowers","status":"publish","type":"post","link":"https:\/\/www.loanshoppers.net\/blog\/do-the-new-restrictions-on-investors-help-borrowers\/","title":{"rendered":"Do The New Restrictions On Investors Help Borrowers?"},"content":{"rendered":"<div class=\"79adbeefd79cda5f8232b2625609aaff\" data-index=\"1\" style=\"float: right; margin:7px 0 7px 7px;\">\n<script async src=\"\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js\"><\/script>\r\n<!-- Loanshoppers - blog post -->\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:inline-block;width:300px;height:250px\"\r\n     data-ad-client=\"ca-pub-0086590260230556\"\r\n     data-ad-slot=\"3710447994\"><\/ins>\r\n<script>\r\n(adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script>\n<\/div>\n<p>Without a doubt, real estate investors who carry-back a mortgage for homebuyers are going to be impacted in a big way by <a href=\"http:\/\/www.cftc.gov\/LawRegulation\/DoddFrankAct\/index.htm\">Dodd-Frank laws<\/a>. On Jan, 10th, 2014, investors who offer owner financing won&#8217;t be able to sell more than 3 residential properties each year unless they are a licensed mortgage loan originator. Moreover, financing must be amortized and balloon payments are prohibited.<\/p>\n<div style=\"width: 300px\" class=\"wp-caption alignleft\"><img loading=\"lazy\" decoding=\"async\" class=\"\" src=\"http:\/\/drdbroker.files.wordpress.com\/2012\/01\/seller-financing-pros.jpg\" alt=\"seller financing\" width=\"290\" height=\"200\" hspace=\"5\" \/><p class=\"wp-caption-text\">Seller financing<\/p><\/div>\n<p>Fortunately, <em>Dodd-Frank only comes into play when the buyer intends to live in the property<\/em>. Additionally, no new laws impact seller financed transactions for commercial property, multi-family, or vacant land and nor should they since they are commercial properties for the most part. Dodd-Frank was made to protect the average consumer not regulate commercial real estate.<\/p>\n<p>In summary, it is just <strong>another instance of the government over-regulating<\/strong> and ultimately slowing a big part of the economy, which is housing. There will be less building and residential development with these laws and ultimately less competition for homebuilders. Lennar, Toll Brothers, KB Homes, Ryland, Hovnanian may benefit more since the smaller investor is not able to compete with an advantage of a balloon payment unless they want to <a href=\"http:\/\/mortgage.nationwidelicensingsystem.org\/Pages\/default.aspx\">get a mortgage originator&#8217;s license<\/a>.<\/p>\n<p>Here&#8217;s a quick overview of some of the restrictions Dodd-Frank places on private seller financing of residential property planned to become law on January 10, 2014:<\/p>\n<p>Homes built by the seller are not eligible.<br \/>\nNo balloon payments are allowed. The loan needs to be fully amortized.<br \/>\nThe seller is required to confirm the home buyer has the real means to repay the loan.<br \/>\nThe loan needs to have a fixed interest rate for no less than five years.<\/p>\n<p>For additional information and understanding you should call the Consumer Financial Protection Bureau at (202) 435-7700 or go to their website (www.consumerfinance.gov\/)<\/p>\n<!--CusAds0-->\n<div style=\"font-size: 0px; height: 0px; line-height: 0px; margin: 0; padding: 0; clear: both;\"><\/div>","protected":false},"excerpt":{"rendered":"<p>Without a doubt, real estate investors who carry-back a mortgage for homebuyers are going to be impacted in a big way by Dodd-Frank laws. On [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":48,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_coblocks_attr":"","_coblocks_dimensions":"","_coblocks_responsive_height":"","_coblocks_accordion_ie_support":"","footnotes":""},"categories":[5,4,3],"tags":[6,8,7],"class_list":["post-21","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investors","category-mortgage-lending-laws","category-seller-financing","tag-dodd-frank","tag-owner-financing","tag-real-estate-investors"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.7 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Do The New Restrictions On Investors Help Borrowers? -<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.loanshoppers.net\/blog\/do-the-new-restrictions-on-investors-help-borrowers\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Do The New Restrictions On Investors Help Borrowers? -\" \/>\n<meta property=\"og:description\" content=\"Without a doubt, real estate investors who carry-back a mortgage for homebuyers are going to be impacted in a big way by Dodd-Frank laws. On [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.loanshoppers.net\/blog\/do-the-new-restrictions-on-investors-help-borrowers\/\" \/>\n<meta property=\"article:publisher\" content=\"http:\/\/www.facebook.com\/Loanshoppers\" \/>\n<meta property=\"article:published_time\" content=\"2013-12-03T17:38:54+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2017-04-15T02:43:16+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.loanshoppers.net\/blog\/wp-content\/uploads\/2013\/12\/seller-financing-pros.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"290\" \/>\n\t<meta property=\"og:image:height\" content=\"200\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Tim Durban\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Tim Durban\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.loanshoppers.net\/blog\/do-the-new-restrictions-on-investors-help-borrowers\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.loanshoppers.net\/blog\/do-the-new-restrictions-on-investors-help-borrowers\/\"},\"author\":{\"name\":\"Tim Durban\",\"@id\":\"https:\/\/www.loanshoppers.net\/blog\/#\/schema\/person\/dfd9556761cf55e24d0ca039ea67c07a\"},\"headline\":\"Do The New Restrictions On Investors Help Borrowers?\",\"datePublished\":\"2013-12-03T17:38:54+00:00\",\"dateModified\":\"2017-04-15T02:43:16+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.loanshoppers.net\/blog\/do-the-new-restrictions-on-investors-help-borrowers\/\"},\"wordCount\":307,\"publisher\":{\"@id\":\"https:\/\/www.loanshoppers.net\/blog\/#organization\"},\"image\":{\"@id\":\"https:\/\/www.loanshoppers.net\/blog\/do-the-new-restrictions-on-investors-help-borrowers\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.loanshoppers.net\/blog\/wp-content\/uploads\/2013\/12\/seller-financing-pros.jpg\",\"keywords\":[\"dodd frank\",\"owner financing\",\"real estate investors\"],\"articleSection\":[\"investors\",\"mortgage lending laws\",\"seller financing\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.loanshoppers.net\/blog\/do-the-new-restrictions-on-investors-help-borrowers\/\",\"url\":\"https:\/\/www.loanshoppers.net\/blog\/do-the-new-restrictions-on-investors-help-borrowers\/\",\"name\":\"Do The New Restrictions On Investors Help Borrowers? -\",\"isPartOf\":{\"@id\":\"https:\/\/www.loanshoppers.net\/blog\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.loanshoppers.net\/blog\/do-the-new-restrictions-on-investors-help-borrowers\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.loanshoppers.net\/blog\/do-the-new-restrictions-on-investors-help-borrowers\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.loanshoppers.net\/blog\/wp-content\/uploads\/2013\/12\/seller-financing-pros.jpg\",\"datePublished\":\"2013-12-03T17:38:54+00:00\",\"dateModified\":\"2017-04-15T02:43:16+00:00\",\"breadcrumb\":{\"@id\":\"https:\/\/www.loanshoppers.net\/blog\/do-the-new-restrictions-on-investors-help-borrowers\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.loanshoppers.net\/blog\/do-the-new-restrictions-on-investors-help-borrowers\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.loanshoppers.net\/blog\/do-the-new-restrictions-on-investors-help-borrowers\/#primaryimage\",\"url\":\"https:\/\/www.loanshoppers.net\/blog\/wp-content\/uploads\/2013\/12\/seller-financing-pros.jpg\",\"contentUrl\":\"https:\/\/www.loanshoppers.net\/blog\/wp-content\/uploads\/2013\/12\/seller-financing-pros.jpg\",\"width\":290,\"height\":200},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.loanshoppers.net\/blog\/do-the-new-restrictions-on-investors-help-borrowers\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.loanshoppers.net\/blog\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Do The New Restrictions On Investors Help Borrowers?\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.loanshoppers.net\/blog\/#website\",\"url\":\"https:\/\/www.loanshoppers.net\/blog\/\",\"name\":\"Loanshoppers\",\"description\":\"Your home finances and beyond\",\"publisher\":{\"@id\":\"https:\/\/www.loanshoppers.net\/blog\/#organization\"},\"alternateName\":\"Loan Shoppers\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.loanshoppers.net\/blog\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/www.loanshoppers.net\/blog\/#organization\",\"name\":\"LoanShoppers.net\",\"url\":\"https:\/\/www.loanshoppers.net\/blog\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.loanshoppers.net\/blog\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/www.loanshoppers.net\/blog\/wp-content\/uploads\/2022\/10\/logo-22.png\",\"contentUrl\":\"https:\/\/www.loanshoppers.net\/blog\/wp-content\/uploads\/2022\/10\/logo-22.png\",\"width\":177,\"height\":35,\"caption\":\"LoanShoppers.net\"},\"image\":{\"@id\":\"https:\/\/www.loanshoppers.net\/blog\/#\/schema\/logo\/image\/\"},\"sameAs\":[\"http:\/\/www.facebook.com\/Loanshoppers\",\"https:\/\/x.com\/loanshoppers\",\"https:\/\/www.youtube.com\/user\/loanshoppers\"]},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.loanshoppers.net\/blog\/#\/schema\/person\/dfd9556761cf55e24d0ca039ea67c07a\",\"name\":\"Tim Durban\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.loanshoppers.net\/blog\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/03cc5c30d6b6a145c0e4b8ca576424e3?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/03cc5c30d6b6a145c0e4b8ca576424e3?s=96&d=mm&r=g\",\"caption\":\"Tim Durban\"}}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Do The New Restrictions On Investors Help Borrowers? -","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.loanshoppers.net\/blog\/do-the-new-restrictions-on-investors-help-borrowers\/","og_locale":"en_US","og_type":"article","og_title":"Do The New Restrictions On Investors Help Borrowers? -","og_description":"Without a doubt, real estate investors who carry-back a mortgage for homebuyers are going to be impacted in a big way by Dodd-Frank laws. On [&hellip;]","og_url":"https:\/\/www.loanshoppers.net\/blog\/do-the-new-restrictions-on-investors-help-borrowers\/","article_publisher":"http:\/\/www.facebook.com\/Loanshoppers","article_published_time":"2013-12-03T17:38:54+00:00","article_modified_time":"2017-04-15T02:43:16+00:00","og_image":[{"width":290,"height":200,"url":"https:\/\/www.loanshoppers.net\/blog\/wp-content\/uploads\/2013\/12\/seller-financing-pros.jpg","type":"image\/jpeg"}],"author":"Tim Durban","twitter_misc":{"Written by":"Tim Durban","Est. reading time":"1 minute"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.loanshoppers.net\/blog\/do-the-new-restrictions-on-investors-help-borrowers\/#article","isPartOf":{"@id":"https:\/\/www.loanshoppers.net\/blog\/do-the-new-restrictions-on-investors-help-borrowers\/"},"author":{"name":"Tim Durban","@id":"https:\/\/www.loanshoppers.net\/blog\/#\/schema\/person\/dfd9556761cf55e24d0ca039ea67c07a"},"headline":"Do The New Restrictions On Investors Help Borrowers?","datePublished":"2013-12-03T17:38:54+00:00","dateModified":"2017-04-15T02:43:16+00:00","mainEntityOfPage":{"@id":"https:\/\/www.loanshoppers.net\/blog\/do-the-new-restrictions-on-investors-help-borrowers\/"},"wordCount":307,"publisher":{"@id":"https:\/\/www.loanshoppers.net\/blog\/#organization"},"image":{"@id":"https:\/\/www.loanshoppers.net\/blog\/do-the-new-restrictions-on-investors-help-borrowers\/#primaryimage"},"thumbnailUrl":"https:\/\/www.loanshoppers.net\/blog\/wp-content\/uploads\/2013\/12\/seller-financing-pros.jpg","keywords":["dodd frank","owner financing","real estate investors"],"articleSection":["investors","mortgage lending laws","seller financing"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.loanshoppers.net\/blog\/do-the-new-restrictions-on-investors-help-borrowers\/","url":"https:\/\/www.loanshoppers.net\/blog\/do-the-new-restrictions-on-investors-help-borrowers\/","name":"Do The New Restrictions On Investors Help Borrowers? -","isPartOf":{"@id":"https:\/\/www.loanshoppers.net\/blog\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.loanshoppers.net\/blog\/do-the-new-restrictions-on-investors-help-borrowers\/#primaryimage"},"image":{"@id":"https:\/\/www.loanshoppers.net\/blog\/do-the-new-restrictions-on-investors-help-borrowers\/#primaryimage"},"thumbnailUrl":"https:\/\/www.loanshoppers.net\/blog\/wp-content\/uploads\/2013\/12\/seller-financing-pros.jpg","datePublished":"2013-12-03T17:38:54+00:00","dateModified":"2017-04-15T02:43:16+00:00","breadcrumb":{"@id":"https:\/\/www.loanshoppers.net\/blog\/do-the-new-restrictions-on-investors-help-borrowers\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.loanshoppers.net\/blog\/do-the-new-restrictions-on-investors-help-borrowers\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.loanshoppers.net\/blog\/do-the-new-restrictions-on-investors-help-borrowers\/#primaryimage","url":"https:\/\/www.loanshoppers.net\/blog\/wp-content\/uploads\/2013\/12\/seller-financing-pros.jpg","contentUrl":"https:\/\/www.loanshoppers.net\/blog\/wp-content\/uploads\/2013\/12\/seller-financing-pros.jpg","width":290,"height":200},{"@type":"BreadcrumbList","@id":"https:\/\/www.loanshoppers.net\/blog\/do-the-new-restrictions-on-investors-help-borrowers\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.loanshoppers.net\/blog\/"},{"@type":"ListItem","position":2,"name":"Do The New Restrictions On Investors Help Borrowers?"}]},{"@type":"WebSite","@id":"https:\/\/www.loanshoppers.net\/blog\/#website","url":"https:\/\/www.loanshoppers.net\/blog\/","name":"Loanshoppers","description":"Your home finances and beyond","publisher":{"@id":"https:\/\/www.loanshoppers.net\/blog\/#organization"},"alternateName":"Loan Shoppers","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.loanshoppers.net\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/www.loanshoppers.net\/blog\/#organization","name":"LoanShoppers.net","url":"https:\/\/www.loanshoppers.net\/blog\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.loanshoppers.net\/blog\/#\/schema\/logo\/image\/","url":"https:\/\/www.loanshoppers.net\/blog\/wp-content\/uploads\/2022\/10\/logo-22.png","contentUrl":"https:\/\/www.loanshoppers.net\/blog\/wp-content\/uploads\/2022\/10\/logo-22.png","width":177,"height":35,"caption":"LoanShoppers.net"},"image":{"@id":"https:\/\/www.loanshoppers.net\/blog\/#\/schema\/logo\/image\/"},"sameAs":["http:\/\/www.facebook.com\/Loanshoppers","https:\/\/x.com\/loanshoppers","https:\/\/www.youtube.com\/user\/loanshoppers"]},{"@type":"Person","@id":"https:\/\/www.loanshoppers.net\/blog\/#\/schema\/person\/dfd9556761cf55e24d0ca039ea67c07a","name":"Tim Durban","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.loanshoppers.net\/blog\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/03cc5c30d6b6a145c0e4b8ca576424e3?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/03cc5c30d6b6a145c0e4b8ca576424e3?s=96&d=mm&r=g","caption":"Tim Durban"}}]}},"_links":{"self":[{"href":"https:\/\/www.loanshoppers.net\/blog\/wp-json\/wp\/v2\/posts\/21","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.loanshoppers.net\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.loanshoppers.net\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.loanshoppers.net\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.loanshoppers.net\/blog\/wp-json\/wp\/v2\/comments?post=21"}],"version-history":[{"count":8,"href":"https:\/\/www.loanshoppers.net\/blog\/wp-json\/wp\/v2\/posts\/21\/revisions"}],"predecessor-version":[{"id":134,"href":"https:\/\/www.loanshoppers.net\/blog\/wp-json\/wp\/v2\/posts\/21\/revisions\/134"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.loanshoppers.net\/blog\/wp-json\/wp\/v2\/media\/48"}],"wp:attachment":[{"href":"https:\/\/www.loanshoppers.net\/blog\/wp-json\/wp\/v2\/media?parent=21"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.loanshoppers.net\/blog\/wp-json\/wp\/v2\/categories?post=21"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.loanshoppers.net\/blog\/wp-json\/wp\/v2\/tags?post=21"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}