Final answer:
Both a home buyer planning to sell the home within a few years and one expecting a significant income increase would benefit from a balloon loan because they would either avoid the large balloon payment or have the funds to cover it.
Step-by-step explanation:
A balloon loan is a type of mortgage that typically offers lower interest rates with a large payment due at the end of the loan term.
This kind of loan can be risky for some, but it might be beneficial for certain home buyers.
The home buyer who would benefit most from a balloon loan would be (C) Both A and B.
Specifically, (A) a home buyer who plans to sell the home within a few years would not be burdened by the large balloon payment if they sell before it is due, and (B) a home buyer who expects to have a significant increase in income in the near future may anticipate having the necessary funds to cover the balloon payment when it comes due.