All Forum Posts by: Steve S

Jon Holdman,

For non-conventional fully amortized loans, are they only done by local banks who keep the loans in house? Are there NON OO non-conventional fully amortized loans? I was suggesting going non-conventional because of the strict condo requirements set up by Fannie Mae.

Thanks

Hi guys,

I am new to BiggerPockets user, but I have been actively reading the forums about real estate investing. In my scenario, I am looking into buying a brand new condominium with no sold units yet. I am planning to rent out this unit in the condo. I know that conventional Fannie Mae mortgage requires 70% of units to be sold until they will consider giving me a loan. I was wondering if I can obtain a balloon NOO mortgage for my condo. Once the note is due, which would be 5-7 years, I believe all the units will be sold and then I can refinance and do a conventional Fannie Mae 30 year fixed rate loan. Or I can sell the unit before the note is due. Is there a such thing as a balloon NOO mortgage? Does balloon mortgages only apply to primary residence? Can I also make additional payments to my principal each month in a balloon mortgage loan?

Any opinions and advice greatly appreciated!