Loan Programs

Imperfect Credit Programs | Conforming and Non-Conforming | Fixed Rate | Balloon | Adjustable Rate | Interest Only | FHA

Balloon loans are short-term fixed rate loans which involve small monthly payments (usually as 30 year loans) for a certain period of time and one large payment for the entire amount of the outstanding principal. Usually they have terms of 3,5 and 7 years.

Balloon loans with refinancing option allow borrowers to convert the mortgage at the end of the balloon period to a fixed rate loan -- based upon the outstanding principal balance -- if certain conditions are met. If you refinance the loan at maturity you need not be re-qualified, nor the property re-approved. The interest rate on the new loan is a current rate at the time of conversion. There might be a minimal processing fee to obtain the new loan. The most popular terms are 5/25 Balloon, and 7/23 Balloon.