The final rule generally prohibits loans with negative amortization, interest-only payments, balloon payments, or terms exceeding 30 years from being qualified mortgages as well as so-called.
Permanent balloon payment qualified mortgage. Small creditors that primarily lend in rural or underserved areas are eligible for the permanent BPQM, which allows them to exclude the balloon payment in the ATR calculation.
Qualified Mortgages held in portfolio by small creditors, including some types of balloon-payment mortgages. These Qualified Mortgages have a different, higher threshold for when they are considered higher-priced for Qualified Mortgage purposes than other Qualified Mortgages. They also are not subject to the 43 percent DTI limit.