If a bank gets overweighted in your loan type, has bad default experience, or gets a reprimand from its regulator, it can and will decline to renew your balloon loan, regardless of what the lender says up front.

I did some high level research including looking into the local economy and determined it is on the decline (unfortuneately) 2% decline annually so I'm trying to determine if this is something I should consider or pass on.

So if the appraised value of the property has declined to the point where the mortgage balance is >80%LTV, you would have to bring it on-side at Close.

Austin is cooling off but my opinion is that the Austin market will flatten out while other areas nationally decline as we move towards a buyers market.

Both have declining populations and depressed economies.

Boise has seen meteoric appreciation since 2011 and prices could dip and you want to also be able to buy as prices are declining.  

The offer was declined.

If the decline starts in 1 year?

Otherwise, decline them with low credit score as a reason and move on to next qualified applicant.

That represents an increase of 3.5 percent;Total dollar volume for single-family homes in 2017 rose 6.5 percent to $23 billion;December single-family home sales climbed 4.1 percent year-over-year with 6,875 units sold;Total December property sales increased 3.5 percent to 8,125 units;Total dollar volume for December increased 2.8 percent to $2.3 billion;At $230,000, the single-family home median price rose 1.7 percent to a December high;The single-family home average price declined 0.6 percent to $292,174;Single-family homes months of inventory declined slightly to a 3.2-months supply;Townhome/condominium sales rose 3.2 percent, with the average price down 5.5 percent to $199,197 and the median price down 9.3 percent to $158,250;Leases of single-family homes fell 3.6 percent with average rent up 3.3 percent to $1,745;Leases of townhomes/condominiums climbed 7.3 percent with average rent up 2.4 percent to $1,532.