There is a very popular loan available that is almost customized for the transferring
borrower. It is called a "balloon" mortgage. The loan is amortized for 30 years, and
you will get a substantial break on the interest rate if you are willing to let the investor
call the entire balance due at a present future date (usually five or seven years).

However, there are safety features included in this type of mortgage. There is
guaranteed renewal at the end of five or seven years at the interest rates available
at that time. Most of them only guarantee a new loan if you meet certain conditions
(like making your payments on time).

If you decide to stay in your home, you can refinance to avoid the future balloon or
call on your note.

The interest break you will get for selecting one of these loans can be as much as
one full percent (for example, an interest rate of 8.25 percent when fixed interests
are higher).

When the economy goes through tough times, condos and townhouses tend to
decrease in value more than single-family residences.

Because of this, mortgages for such residences have special requirements. Most
lenders will want the units to be at least 60 percent owner-occupied. This reason for
this requirement is the belief that owners will maintain the complex better than
renters and the homeowners' association will be stronger.

Once you find the unit you like, you will need to get the answers to the following
questions:

• Is the FHA approved? (These are the easiest to finance).

• What is the percentage of owner-occupancy? The higher the percentage, the better.

• Does any one entity own more than 10 percent of the units? If so, this usually
makes it hard to finance.

• Is the homeowners' association financially sound and owned totally by the
individuals in the complex?