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are balloon payments permitted under Dodd-Frank owner financing?

by bellinesam98886 from Pocahontas, Iowa. May 4th 2015 Reply


William J Acres (William_Acres)
#2 ranked lender in Arizona - 7,788 contributions

Yes.. Dodd-Frank puts a definition on what a "Qualifying" and "Non-Qualifying" (or QM & Non-QM) mortgage is.. restrictions are much less if a lender originates a loan that is QM compliance.. it's easier to sell on the open market and has less long term liability.. Non-QM loans are still originated, and balloon payment financing would fall under this category.. they are legal and allowable.. but would be funded and held within a lenders own portfolio and most likely would not be sold.. as far as owner financing, pretty much everything is allowable so long as it's disclosed to you in advance, and the appropriate paperwork and disclosures are filled out and signed correctly.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com

May 4th 2015
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Phil Dumouchel (PhilDu)
#32 ranked lender in South Carolina - 2,224 contributions

yes, but why are you asking? For example, a construction loan to build a home often has a baloon, as does a HELOC.

May 4th 2015
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Ralph Richard Guertin (ralph@absolutelowrates.com)
#136 ranked lender in Florida - 637 contributions

yes

May 5th 2015
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Jericho Cherry (Jerichocherry)
#58 ranked lender in Virginia - 1,107 contributions

The simple answer is yes.

May 5th 2015
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Ron Pippin (RonPippin)
#26 ranked lender in Utah - 156 contributions

yew, however you don't see them often unless it is a niche loan such as a construction or home equity

May 5th 2015
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Derick Condron (rightstartoregon)
#33 ranked lender in Oregon - 597 contributions

Simple answer is yes.

May 5th 2015
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Sean Young (SeanYoung)
#2 ranked lender in Colorado - 1,106 contributions

Yes they are

May 6th 2015
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