Due to the passage of the Secure and Fair Enforcement for Mortgage Lending Act (SAFE Act), it has become a whole lot more complicated for sellers to offer, and buyers to obtain, seller financing for residential properties, including vacant lots upon which a 1-4 family residence is intended to be built. This applies to land contracts, as well as seller-held mortgages.
What does this mean for sellers? Unless the home (or residential vacant lot) that you are selling is currently your primary residence, or unless you are offering financing to a family member, legally offering seller financing to a buyer may require you to be a licensed residential loan originator.
What does this mean for buyers? If a seller offers, or you request, seller financing of a 1-4 family residence, or a residential lot upon which such a structure is intended to be built, and that financing is primarily for personal, family, or household use, be aware that the seller may not be legally allowed to do so.
What does this mean for real estate agents? Be very careful if a proposed transaction involves seller financing. A real estate agent negotiating a real estate transaction in which the seller will provide either a mortgage or a land contract that is primarily for a personal, family, or householld purpose may also need to be licensed as a mortgage loan originator. The agent should refer the parties to an attorney who could determine whether the parties and the agents can safely negotiate the offer and the financing terms or whether the attorney can deal with that aspect of the transaction.
If the seller financing is for property held for business or investment purposes and not for a 1-4 family residential property, then no license is required.
For more see the Wisconsin Statutes, specifically Chapter 224.726 http://www.legis.state.wi.us/statutes/Stat0224.pdf