New to balloon loans

Posted By: elebra

New to balloon loans - 04/04/13 04:48 PM

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?
Posted By: ahkcompliance

Re: New to balloon loans - 04/04/13 06:09 PM

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.
Posted By: elebra

Re: New to balloon loans - 04/04/13 07:43 PM

Thank you ahkcompliance, that gives me a place to start looking!!