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 is due and payable at the end of the 7-year term (known as a balloon payment). Refinance options may be available for this remaining balance. 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. This is an excellent option for borrowers looking to lock into a lower rate for an extended period of time in a rising rate environment.
Program Highlights:
- Up to $1,000,000 loan amount
- Single unit properties only
- Primary and second home options available
- VA and NC homes only
- 80% maximum loan-to-value | 70% maximum loan-to-value on second home
- Ability to use qualifying assets for income qualification regardless of borrower’s age
- Streamlined application and approval process
- Fixed rate for 7 years with a balloon payment feature at the end of the 7- year term
- Property address required