The term “flex mortgage loan” refers to a home loan that has flexible payment terms. … A flexible mortgage loan was a type of loan that allowed consumers to get into a home at a fixed rate, with that extra interest added to the balance of the loan in a practice known as negative amortization.

How does a flex mortgage work?

With flex down mortgages, you borrow the money for your down payment from a third party — someone other than you and the bank extending you the mortgage. This could be a relative of yours, a friend of yours, a private third party, funds from a credit card advance, or a personal loan.

Who qualifies for flex modification program?

The Freddie Mac Flex Modification (Flex Modification) provides eligible borrowers who are 60 days or more delinquent (and the property is a primary residence, second home, or investment property), or current or less than 60 days delinquent and in imminent default (and the property is a primary residence), an option to …