The SAFE Act defines a "nontraditional mortgage" as any loan product other than a 30-year fixed-rate mortgage. Nontraditional loans include adjustable-rate mortgages (ARMs), interest-only loans, payment option ARMs, and other products with features outside the standard fixed-rate structure.
“Nontraditional mortgage product means any mortgage product other than a thirty-year fixed-rate mortgage.”
— SAFE Act, 12 USC § 5102(7); NMLS UST Outline
Thus, the 30-year fixed-rate mortgage with a 25% down payment is not nontraditional; all the other examples are.
[References:, , SAFE Act, 12 USC § 5102(7), , SAFE MLO National Test Study Guide, , ]
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