With all of the hype about higher priced balloon loans, I'm hesitant about balloon loans at all. If we do a balloon loan that is NOT higher priced, is that still ok? Or will that be changing too?
Right now balloon loans are ok. The new Ability to Repay rules that the CFPB releases may make it harder to make a balloon loan as it is not a qualified mortgage. If you operate predominately in a rural area as defined by the CFPB there is a rural balloon payment qualified mortgage exemption.