Unacceptable Subordinate Financing Terms
The table below describes unacceptable subordinate financing terms. Refer to B4-2.3-04, Loan Eligibility for Co-op Share Loans, for information related to co-op share loans.
|✓||Unacceptable Subordinate Financing Terms|
|Mortgages with negative amortization (with the exception of employer subordinate financing that has deferred payments).|
|Subordinate financing that does not fully amortize under a level monthly payment plan where the maturity or balloon payment date is less than five years after the note date of the new first mortgage (with the exception of employer subordinate financing that has deferred payments).|
For complete details, see B2-1.2-04, Subordinate Financing.