This allows the monthly payment to be lower than a 30-year fixed rate throughout the term of the loan and then the remaining balance may be refinanced at the end of the 7-year term (known as a balloon payment). This program is based on a 20% down payment with an initial period of 7 years amortized for 30 years. At the end of the balloon period, the balance is due and payable.
Program Highlights:
- Must meet qualifying criteria for the program
- Rate can be bought down by builder, seller or borrower
- Up to $1 million loan amount