[WSBARP] Selle financing

[Stromberg, Spencer]

Here's my 2 cents, Craig:

According to this page, Residential Seller Financing and Third-Party Lending<https://dfi.wa.gov/residential-seller-financing>, and the WACs sited there, your seller/lender is exempt and the exemptions don't specify any limitations on the permissible terms. You might try requesting a waiver anyway, using the email address on that page. They've always been pretty quick to reply to those emails in the past. Even if your lender weren't exempt (i.e., the waiver is needed), the terms you mention shouldn't be a problem - variable rate loans are clearly permitted and I'm not aware of any requirement that loans be fully amortizing (in fact I don't know that I've ever sought an exemption for a fully amortizing loan).

Regarding the state and federal rules, I believe the federal rules boil down to a requirement that states have rules and that lenders follow the state rules.


Spencer A. W. Stromberg
Director
601 W Riverside Ave, Suite 710, Spokane, WA 99201
T:509.455.3713 | F: 509.455.3718
sstromberg at fennemorelaw.com
Washington, Idaho




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From: wsbarp-bounces at lists.wsbarppt.com <wsbarp-bounces at lists.wsbarppt.com> On Behalf Of Craig Gourley
Sent: Thursday, October 30, 2025 9:47 AM
To: WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com>
Subject: [WSBARP] Selle financing

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________________________________
Listmates,   I always get tangled up in the exemptions for Seller financing.  I know there are both State and Federal rules.   I have a client that wants to do Seller financing on their personal residence.  Interest only with a rate change at 2 years, balloon in 5 years.   This is their one and only sale.   My concerns are that the loan is not fully amortized, there is a rate change mid term and it has a balloon in 5 years.  I think it is OK, I just can't seem to confirm it.  Shockingly, DFI won't return my calls.   Thoughts?  Thanks, Craig

GOURLEY LAW GROUP
THE EXCHANGE CONNECTION
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