A bullet loan — also called a single payment, bubble, or balloon loan — requires the homeowner to pay the full principal as a lump sum at the end of the loan term rather than in monthly installments. Interest accrues throughout the term and is paid at maturity along with the principal.
Bullet loans are most commonly used as the ITC component of a multi-loan structure. For a fully combined single-loan approach, see Loans: Mortgage-Style w/ Incentive Paydown.
In this article, we’ll cover:
When to use a bullet loan
- When your lender offers a true balloon loan with a lump-sum payment at maturity
- As the short-term ITC bridge within a manually built split-loan structure alongside a mortgage-style loan
How to create a bullet loan
- Go to Database > Financing products and click Add financing product.
- Enter a name, select a project type, and choose Loan. Click Add.
- Click Add Loan.
- Set Loan type to Bullet.
Configure the following fields:
- Name — The loan label in Sales Mode.
- Principal — The percentage of system cost this loan covers. Set to 30% to model the ITC portion in a split structure, or match the full financed amount for a standalone balloon loan.
- Flat fee — Optional fixed dollar amount added to the loan principal.
- Dealer fee — Lender fee as a percentage of the financed cost.
- Incentives apply to dealer fee — Enable to include the dealer fee in incentive and tax-basis calculations.
- Interest is tax deductible — Enable if applicable.
- Interest rate — Annual rate from your lender.
- Duration — Months until the lump-sum payment is due (typically 12–18 months for an ITC bridge loan).
- Click Save.