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Interest-Only Loans in Clovis
Clovis attracts investors and self-employed borrowers who need payment flexibility. Interest-only loans let you defer principal payments for 5-10 years while building equity through appreciation.
Most Clovis borrowers use these for investment properties or jumbo purchases where cash flow matters more than rapid equity buildup. The payment difference can be $1,000+ monthly on a $600,000 loan.
You need 20-30% down and credit scores starting at 680. Lenders qualify you on the fully amortized payment, not the interest-only payment, so income verification is strict.
Self-employed borrowers can use bank statements instead of tax returns. Expect rates 0.5-1.5% higher than conventional loans due to the non-QM structure.
Interest-only loans come from non-QM lenders, not conventional channels. SRK Capital accesses 200+ wholesale lenders who price these loans differently based on property type and borrower profile.
Rate spreads between lenders can exceed 1% on identical scenarios. Some lenders cap loan amounts at $2M while others go to $5M+ for qualified borrowers in Clovis.
Most Clovis clients who choose interest-only are fixing and flipping, buying rentals, or managing irregular income. The low payment protects cash flow during the hold period.
Watch the rate structure. Some lenders offer 5-year fixed interest-only, then adjust. Others stay fixed for 10 years before converting to principal and interest. The wrong choice costs thousands when the loan adjusts.
DSCR loans compete directly with interest-only for rental properties. DSCR qualifies on rent income, not personal income. Interest-only qualifies on your income but gives lower payments.
Jumbo ARMs offer another alternative with lower rates but require principal payments from day one. If you need maximum payment relief and plan to sell or refinance within 5-10 years, interest-only wins.
Clovis sits in a growth corridor with steady appreciation and strong rental demand. Interest-only works well when you expect property values to climb and want to redeploy capital into other investments.
Agricultural business owners and real estate investors dominate the interest-only market here. Seasonal income patterns make the payment flexibility valuable, especially during slower revenue quarters.
Your payment jumps to principal plus interest, often increasing 30-50%. Most borrowers refinance or sell before this happens to avoid the payment shock.
Yes, but lenders prefer investment properties. Expect stricter credit and down payment requirements for owner-occupied interest-only loans.
On a $500,000 loan at 7%, you save about $1,300 monthly during the interest-only period versus a 30-year fixed payment.
Yes, most offer 5 or 10 years fixed interest-only, then convert to adjustable or fully amortizing. Rates vary by borrower profile and market conditions.
Minimum is 680, but most competitive rates require 720+. Higher scores unlock better pricing and higher loan amounts.
Mortgage financing for independent contractors and freelancers who earn 1099 income instead of traditional W-2 wages.
Mortgage programs that allow borrowers to qualify based on liquid assets rather than traditional employment income.
Non-QM loans that use 12 to 24 months of bank statements to verify income for self-employed borrowers.
Short-term financing that bridges the gap between buying a new property and selling an existing one.
Debt Service Coverage Ratio loans that qualify investors based on a rental property's income rather than personal income.
Mortgage programs designed for non-US citizens and non-permanent residents who want to purchase property in the United States.
Asset-based short-term loans primarily used by real estate investors for property acquisition and renovation projects.
Financing solutions tailored for real estate investors purchasing rental properties, fix-and-flip projects, or investment portfolios.
Home loans for borrowers who have an Individual Taxpayer Identification Number instead of a Social Security number.
Adjustable rate mortgages held in a lender's portfolio rather than sold on the secondary market, offering more flexible terms.
Non-QM mortgages that use a CPA-prepared profit and loss statement to verify income for self-employed borrowers.
Home loans with interest rates that adjust periodically based on market conditions after an initial fixed-rate period.
Specialized mortgage programs designed to support homeownership in underserved communities with flexible qualification criteria.
Mortgages that meet the guidelines and loan limits set by Fannie Mae and Freddie Mac for secondary market purchase.
Financing for building a new home or making major renovations, typically converting to a permanent mortgage upon completion.
Traditional mortgage financing not backed by a government agency, offering flexible terms and competitive rates for qualified borrowers.
Innovative loan products that leverage projected home equity growth to provide favorable financing terms.
Government-insured mortgages from the Federal Housing Administration with low down payments and flexible credit requirements.
A revolving line of credit secured by your home equity that allows you to borrow funds as needed during a draw period.
A fixed-rate second mortgage that provides a lump sum of cash by borrowing against the equity built in your home.
Mortgages that exceed the conforming loan limits set by the FHFA, designed for financing high-value luxury properties.
Loans for homeowners aged 62 and older that convert home equity into cash without requiring monthly mortgage payments.
Government-backed zero down payment mortgages for eligible rural and suburban homebuyers who meet income limits.
Government-guaranteed mortgages for eligible veterans, active-duty service members, and surviving spouses with zero down payment.