Commercial loan on STR

[Alexa Intong]

Hi Bigger Pockets members! First of all I want to thank everyone on here who have posted and been active on this platform, its been a huge help to people like me who are new and needing all the guidance we can get. 

So me and my partner are looking to purchase our very first investment property and turn it into a STR in Northwest Arkansas. However, we're having trouble financing it w a traditional loan because of our lack of work history, other than that we have excellent credit and great income to support the purchase.

The loan will solely be under my partner, who as of this past January recently switched to a job that's classified as variable income (even though the job itself is the same career he's had for the last three years). And because of that, we're getting denied a conventional loan and their wanting us to wait until he's had this new job for a full year.

My question is: do you guys suggest a commercial loan for a STR in this current market? I've heard plenty of people do this for their first property and we've reached out to a few local lenders who offer a 5 year locked rate then a 20 year ARM. A few of my worries is the rising rates, not being able to sell without having a balloon payment (not sure if this is all the lenders), prepayment penalties, etc.

Our two other options are find a co-signer for a conventional 30yr loan or wait until next January for his work history to be seasoned and save up in the meantime. 

We were so set on our goals for this year and we spent the last six months saving and preparing to finally make our first purchase. We don't want to let this stop us but we also don't want to burn ourselves on our very first investment. 

Thanks in advance!