01
Maturity obligation
Signed note and lender schedule
Record the due date, projected balance and any conditions for an extension.
Loan terms · field guide
A low payment does not fund the balloon
Put the maturity balance, due date and fallback cash plan on one page before relying on a refinance.
Sources checked November 1, 2026 · Educational document review · No loan offer
Build the evidence before choosing an input
02
Refinance hypothesis
Indicative terms and required milestones
Identify valuation, rent, credit, seasoning or other conditions that remain unresolved; preliminary terms are not a commitment.
03
Fallback resources
Dated cash plan and verified availability
Separate cash you actually control from sale proceeds or new financing that do not yet exist.
Fictional funding gap
An authored teaching record; amounts and situations are fictional, not market statistics or actual borrower files.
- Assume the loan schedule shows $280,000 due at maturity.
- Available cash earmarked for repayment is $40,000; no refinance is committed.
- Unfunded amount: $280,000 − $40,000 = $240,000.
The $240,000 remains a gap even if a spreadsheet assumes refinancing will be available.
Turn the record into a usable next step
- 1
Work backward from the contractual due date. Include time to obtain current payoff figures, appraisal, underwriting and settlement; do not invent a guaranteed closing duration.
- 2
Ask the current lender for extension conditions and costs in writing. Record who can approve an extension and whether it is discretionary.
- 3
Compare a refinance path, sale path and cash path with their conditions and dates. If none can fund the obligation, escalate early rather than describing the loan as self-liquidating.
What this evidence does not settle
CFPB explains that falling property values or a weaker financial position can prevent refinancing. This checklist makes no forecast of value, future credit availability or extension approval.
Sources and scope
- CFPB — What is a balloon payment?
Defines the large payment at maturity and the risk of relying on refinancing.
Read November 1, 2026. This is the check date, not a new effective date for the source.
- CFPB — Payoff amount versus current balance
Explains interest through the intended payoff date and other possible amounts.
Read November 1, 2026. This is the check date, not a new effective date for the source.
The review steps are DSCRDealCheck’s editorial checklist. Agency guides and consumer mortgage explainers define documents and concepts; they do not establish a DSCR provider’s program rules or guarantee that consumer disclosure requirements apply to business-purpose financing. See the transaction-scope distinction in Regulation Z. Confirm the actual file with the provider and the relevant qualified professional.
Continue the loan terms review
Choose the unresolved document in your file. Each guide addresses a different input or obligation.