Lower payment now. Flexibility built in.
Pay only the interest for the first 5 to 10 years, then convert to a fully amortizing payment. A cash-flow tool for borrowers who want control over where their money works.
A strategic product for borrowers who manage cash flow deliberately.
During the interest-only period, the required payment covers interest alone. You can pay toward principal whenever you choose, or keep the difference invested. After the period ends, payments adjust to pay off the remaining balance over the remaining term.
Who it fits
- High-income borrowers with variable or bonus-heavy compensation
- Real estate investors prioritizing cash flow
- Buyers of higher-priced homes who want a lower entry payment
- Borrowers expecting a sale, refinance or income jump within 10 years
- Self-employed borrowers with seasonal cash flow
Let’s find the right fit.
Apply now or talk through your options with Erick.
Why borrowers choose Interest-only loans.
Lower required payment
The minimum payment is interest only, which can be hundreds or thousands less each month.
Optional principal payments
Pay principal when it suits you: bonus season, a liquidity event, a strong rental year.
Jumbo and Non-QM options
Available on jumbo and Non-QM programs, including bank statement and DSCR.
Fixed or ARM
Choose a fixed rate for stability or an ARM for a lower starting rate.
Long IO periods
Interest-only periods of 5, 7 or 10 years, with 30 or 40-year total terms on select programs.
Clear disclosure
You will see the exact payment before and after the interest-only period before you commit.
Typical requirements
Credit score typically 680 to 700 or higher
Down payment usually 20% or more
Qualification is often based on the fully amortizing payment, not the interest-only payment
Reserves of 6 to 12 months are common
Available on primary homes, second homes and investment properties
Guidelines vary by lender, program and property. Erick will confirm exact requirements for your file.
How it works
Quick call.
Ten minutes on the phone. You tell Erick the goal, he tells you the realistic options.
Pre-approval.
Send documents through a secure link. Most pre-approvals are issued the same day.
Lock and process.
Rate locked, file submitted, updates in plain English every step.
Close.
Sign with a remote online notary where available, or in person. Keys in hand.
Interest-only loans FAQ
Does my payment go up after the interest-only period?
Yes. Once the interest-only period ends, the payment increases to pay off the full balance over the remaining term. Erick shows you both numbers upfront.
Do I build equity during the interest-only period?
Only through appreciation and any voluntary principal payments. The required payment does not reduce the balance.
Can I pay extra toward principal?
Yes, at any time and in any amount, with no penalty on owner-occupied loans.
Who should not use an interest-only loan?
Borrowers who need the lowest possible payment with no plan for the adjustment, or who would struggle if the payment increased. It is a tool for borrowers with a strategy.
Is it available on a conventional loan?
Interest-only is generally offered through jumbo and Non-QM programs rather than standard conforming loans.
Ready to talk numbers?
Call, email or send a quick message. Erick answers questions directly and tells you what fits, and what does not.
