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San Leandro sits in a high-cost East Bay market. Properties here often demand serious buying power.
Interest-only loans let you pay just the interest upfront. That keeps your monthly payment low while you hold or grow equity.
700+ typical
Min Credit Score
20% minimum
Down Payment
5–10 years
Interest-Only Period
Non-QM
Loan Classification
12 months typical
Reserves Required
These are non-QM loans. Standard agency rules don't apply, but lenders get stricter on credit and reserves.
Expect lenders to want 700+ credit, 12 months of reserves, and a down payment of at least 20%.
Interest-only products live in the wholesale and portfolio lending space. Most retail banks don't touch them.
At SRK CAPITAL, we work with 200+ wholesale lenders. That means real options, not one bank's in-house product.
Interest-only loans work best for borrowers with irregular income. Think business owners, investors, commission earners.
The interest-only period typically runs 5 to 10 years. After that, payments reset and include principal — plan for that jump.
A conventional loan builds equity from day one. An interest-only loan doesn't — you're paying the bank's cost of money first.
ARMs can also lower your initial payment. But interest-only loans cut deeper on monthly costs, especially on larger balances.
San Leandro borders Oakland and has seen sustained demand from East Bay buyers priced out of other cities.
Investors buying multifamily here sometimes use interest-only to maximize cash flow during a repositioning period.
Yes, but lenders still require strong credit and reserves. W-2 borrowers qualify — the non-QM label doesn't exclude you.
Payments reset to include principal. Your monthly payment will increase, sometimes significantly. Plan ahead.
Yes. Many investors in Alameda County use them to manage cash flow during a hold or rehab period.
Most lenders want 700 or above. Some portfolio lenders go lower with compensating factors like large reserves.
DSCR loans qualify based on rental income, not your personal income. Interest-only is a payment structure, not an income type.
Generally yes. Non-QM products price at a premium over conventional loans. Rates vary by borrower profile and market conditions.
Interest-Only Loans in San Leandro