Five year balloon loan

[Nathan Cornett]

I am working on a (2) single family home purchase. I am using a commercial lender. I started with requesting a 30 year fixed, but I am actually leaning toward a 5 year balloon at 4.5%, 25% down, amortized over 25 years. I've never used a balloon loan, it makes me nervous. What should I be looking for? What concerns should I have? What's the best practice for using this kind of lending? Any help that can be provided would be much appreciated!