In the last great debt bubble in the U.S. that peaked in 1929, the average household could not afford a house and had to put down 50% and get a 5-year balloon mortgage.

FORBES: Greatest Real Estate Bubble In Modern History Not Done Bursting

After construction, the elder Mr. Spiliadis, 74, applied for the loan to roll into a 20-year mortgage with balloon payments every three years.

WSJ: Foreclosures loom as small firms face balloon payments on mortgages