K.M. Minemier & Associates is a certified Woman Owned Small Business (WOSB) engaged in full service real estate asset management and marketing.

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Where is the affordable housing? Who can help?

November 07, 2019

 

Great question. I wish I had a dollar for every time that I have heard it.

As most of us are aware of, the cost of housing is rising faster than most workers pay or worse yet, social security. To make things worse, today most lenders will not make a loan under 60,000 or so. Why? These lenders are regulated and told how much they can charge to create a loan.

Since the amount that they would have to charge is more than allowed, it does not make sense to lose money on low amount loans.

So, what could be an answer?

How about using seller financing?

Seller financing has been around for a very long time. This is an agreement that allows a buyer to pay the seller instead of the Bank. Since the seller agrees to take payments, there is no Bank needed.

Up until January 10th, 2014 this was a viable option. However, on this date, a bill known as Dodd Frank was signed into law.

This clamped restrictions on loans across the entire spectrum including owner financed transactions.

While this bill was passed to try to protect the consumer, it has created the opposite effect.

Now the underserved and lower income Americans have fewer options.

Here is the good news! All is not lost.

There are people from all over the country willing to stand up and talk with our elected officials and tell them how to fix this problem.

They are members of The Seller Finance Coalition.

On their own dime, these dedicated people travel to Washington and talk with Senators and Representatives to spread the word. Seller financing is a viable option to allow all Americans the ability to participate in the American Dream. All we need is a change to the Dodd Frank Bill.

If this sounds like something that you would like to know more about, please visit www,sellerfinancecoalition.org


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