Congress is touting this as a way to deal with unscrupulous house “flippers” who offer owner-finance to unwitting consumers.
It’s REALLY more about the banks ensuring their job security, by forcing both homeowner/sellers and home buyers to go through the the banks for financing.
Based upon what we’ve seen from them, and their lending practices, I think they are HARDLY in a position to criticize Owning-Financing. Especially when owner financing lenders aren’t being held hostage by the underwriters, as we are currently seeing from the home mortgage industry.
Limited to 20 years and 8% APR interest.
I bought my first home on a land contract when I was 16 yrs old. Try getting a bank loan at 16, or even 18, with no credit history or cosigner!
Closing costs? About $50 plus whatever they want as a down-payment.
This is a very dumb bill that will truly screw over young first-time home buyers.
My impression of flippers is that they improved housing for millions of people, upgrading many neighborhoods across the country.
Then, they ending up losing more than most in the RE collapse.
The “worst” of the flippers were just rookies, and still are. Leave it to congress to want to “protect us” from those working to improve housing stock and neighborhoods overall.
Anyone who has worked with some banks and developers knows that, in comparison, we hardly need “protection” from rookie flippers.