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If you are thinking of selling your property with a carry back loan, the Dodd-Frank Act created rules applying to residential seller financing. A carry back loan makes a property more attractive as a buyer doesn’t have to come up with the entire purchase price in cash. The first restriction eliminates carrybacks on properties owned by entities like LLCs and corporations – the seller must be a person, estate or trust. Second, the seller can’t have built the home or been the contractor. In addition, only one house per year can be sold using seller financing with a balloon payment. There are more rules to follow when the loan has an adjustable rate, so typically a fixed interest rate is a better choice. In our metro Phoenix market, land sales are the most common transactions where carry backs are offered. If you are interested in selling with a carry back, contact me for more info.