skip to main content
investment property balloon mortgage
Financing for long-term investors looking to keep monthly costs low.
financing for investors
maximize cash flow with lower monthly payments and a 15-year term
Looking to finance an investment property with smaller monthly payments? Our 15/30 Balloon Loan gives you the benefit of a 30-year amortization schedule—while only requiring payments for the first 15 years. At the end of the 15-year term, the remaining balance comes due in a single balloon payment1.
This structure helps keep your monthly payments low during the early years of the loan, making it a strong fit for members focused on cash flow and long-term strategy. This is a non-conforming loan product and is available for qualifying investment properties only.
Have questions about balloon loans or investment financing? Our local mortgage advisors are here to help you find the best fit for your investment goals.
Features
- 15/30 balloon structure – Payments based on 30-year amortization, with a balloon payment after 15 years
- Lower monthly payments – Ideal for maximizing cash flow in the early years
- Fixed Rate Mortgage (FRM) – Enjoy rate stability for the life of the loan
- For investment properties only – Not available for primary or second homes
- Non-conforming loan – Specialized product for investment financing outside standard agency guidelines
Ideal For:
An Investment Property Balloon Loan is best suited for borrowers who intend to sell or refinance the property within a few years as the balloon loan offers lower initial payments and interest costs or who are expecting a cash influx before the balloon payment is due.
Frequently Asked Questions
A: A balloon mortgage lets you make lower monthly payments based on a longer amortization schedule—in this case, 30 years—while the loan itself is due in full at the end of the 15-year term. At that time, the remaining balance must be paid in one lump sum, called the balloon payment.
This structure can help investors maximize cash flow in the early years of ownership. To review how a balloon loan fits your investment strategy, connect with a Mortgage Advisor.
A: When the 15-year term ends, the remaining unpaid principal becomes due in one balloon payment. Most investors either refinance the remaining balance, sell the property, or pay off the balloon using available funds.
A Mortgage Advisor can help you review options for managing or preparing for the balloon payment well before it comes due.
A: Investment property balloon mortgages require a higher down payment because private mortgage insurance (PMI) is not available on balloon loan products. The 20% down payment helps reduce risk while allowing investors to benefit from lower initial payments and flexible financing terms.
A Mortgage Advisor can help you compare this option with other investment loan structures.
A: This loan is designed for non-owner-occupied investment properties only. Primary residences and second homes are not eligible. Eligible properties typically include single-family homes, duplexes, or other rental-focused real estate that generates income.
A: Many investors choose balloon mortgages because the monthly payments are lower than those on a fully amortizing loan. This helps improve cash flow and overall return on investment, especially in the early years of rental ownership.
Balloon mortgages also appeal to investors planning to sell or refinance before the balloon payment is due.
A: In many investment property loans, rental income from the property may be considered when determining your ability to repay, especially if the home already has a rental history or a market rent analysis is available. However, income qualification requirements vary.
A Mortgage Advisor can confirm whether rental income may be used for your specific loan scenario.
plan your next move
explore our mortgage calculators
Understanding your mortgage options can make a big difference in your financial future. Our mortgage calculators help you figure out monthly payments, estimate costs, and explore loan types to find what works best for you. Whether you’re buying a home, refinancing, or planning for the future, these tools give you the information you need to make confident choices.
related mortgage articles
Homebuying Basics: Closing Costs Explained
A simple, easy to understand guide to what closing costs are, when they’re paid, and how to prepare for them.
7 Questions to Ask Before Refinancing Your Mortgage
Is now the right time to refinance your mortgage? Here is a guide of key points and recommended questions to ask before refinancing.
13 Home Selling Hacks To Get the Highest Offer for Your Home
A home is the most significant financial investment you will ever make. Make sure you get the most for it when you decide to sell. Take these tips to ensure you sell your home quickly and for the highest possible price.
How to Build Your Dream Home with a Construction Loan
What if your dream home isn’t even on the market? Maybe it’s not, because you haven’t built it yet! A construction loan can open up a whole new world of homebuying possibilities! Here’s how they work.
Offer and terms subject to change. Loans subject to credit and collateral approval. Rate and term based on individual credit history and program guidelines. Consult a mortgage advisor for more details.
[1] Payment example, $250,000 financed for 15 year term / 30 amortization schedule balloon at 7.922% equals a monthly payment of $1,812.67 for 15 years. If only the minimum monthly payment is made, at the end of the 15 year term, a minimum $191,120.78 balloon payment is due.