5 Year Balloon Mortgage Pros/Cons

[Landon Kohlrusch]

Hello,

I am currently looking into buying my first investment property (potentially small multi-family). I have bought my Primary Residence and another 82 acre land purchase thru a local bank in which i have gained a pretty good relationship with them. I am currently being told my only option for financing an investment property is with a 5 year balloon amortized over 25 years with 20% down payment. Can someone please let me know opinions on pros vs. cons for this type of lending and if you think i should be looking into different options. I would like to get into a 30 year fixed rate but I'm not sure if that is an option for me in my area. Any help/advise is greatly appreciated!

Thanks,

[Jill F.]

Talk to other lenders. We have found that different portfolio lenders have very different preferences for loan types and terms and further, that terms are negotiable. Also keep in mind that loan officers usually want to do a deal so it is in your best interest to provide them with good info that will help your loan pass underwriting and allow your loan officer to make the best possible case on your behalf to their loan committee.