Answer:
A one-year P&I term loan would be a 1-year balloon note, not temporary financing.
First published on BankersOnline.com 10/15/12
New Construction for 12 Months- Qualify for HPML?
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Question:
Does the loan have to be new construction for 12 months or less to not qualify for HPML status? If the construction is complete on their primary homestead (and we the bank held the interim 12 month construction loan) and now want to do a 12-month temporary term out of the current debt to start receiving P and I payments, does this qualify for HPML? The intention is to have perm conventional financing pay us off within the next 12 months.
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