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<p class="MsoNormal"><span style="font-size:11.0pt">Here’s my 2 cents, Craig: <o:p>
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<p class="MsoNormal"><span style="font-size:11.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt">According to this page, <a href="https://dfi.wa.gov/residential-seller-financing">
Residential Seller Financing and Third-Party Lending</a>, 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).
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt">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.
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<strong>CONFIDENTIALITY NOTICE: </strong>The information contained in this message may be protected by the attorney-client privilege. If you believe that it has been sent to you in error, do not read it. Please immediately reply to the sender that you have received the message in error. Then delete it. Thank you.
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<p class="MsoNormal"><b><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;mso-ligatures:none">From:</span></b><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;mso-ligatures:none"> wsbarp-bounces@lists.wsbarppt.com <wsbarp-bounces@lists.wsbarppt.com>
<b>On Behalf Of </b>Craig Gourley<br>
<b>Sent:</b> Thursday, October 30, 2025 9:47 AM<br>
<b>To:</b> WSBA Real Property Listserv <wsbarp@lists.wsbarppt.com><br>
<b>Subject:</b> [WSBARP] Selle financing<o:p></o:p></span></p>
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<p class="MsoNormal"><b><span style="font-size:8.5pt;color:red;mso-ligatures:none">REPLY-TO MISMATCH</span></b><span style="font-size:8.5pt;color:red;mso-ligatures:none"><br>
Replying to this message sends to a different address than the one it's from. <o:p>
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<p class="MsoNormal"><span style="font-size:11.0pt">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 <o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><b><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">GOURLEY LAW GROUP</span></b><span style="font-size:11.0pt;font-family:"Calibri",sans-serif"><o:p></o:p></span></p>
<p class="MsoNormal"><b><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">THE EXCHANGE CONNECTION</span></b><span style="font-size:11.0pt;font-family:"Calibri",sans-serif"><o:p></o:p></span></p>
<p class="MsoNormal"><b><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">SNOHOMISH ESCROW
</span></b><span style="font-size:11.0pt;font-family:"Calibri",sans-serif"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">P.O. Box 1091<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">Snohomish, WA 98291<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">PH: (360) 568-5065 (800) 291-8401<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">Fax: (360) 568-8092
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