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Interest-Only Loans in Selma
Selma borrowers with seasonal ag income or investment properties use interest-only loans to manage cash flow during lean months. These non-QM loans work when your income doesn't fit the W-2 box.
You pay only interest for 5-10 years, then the loan adjusts to full principal and interest payments. Monthly payments drop 30-40% during the interest-only period compared to conventional financing.
Most lenders want 700+ credit and 20-30% down for interest-only loans in Selma. Bank statement programs let you qualify on deposits instead of tax returns if you're self-employed.
Expect reserves covering 6-12 months of payments. Lenders price these loans based on your exit strategy—whether you'll refinance, sell, or absorb the higher payment when the IO period ends.
Interest-only loans come from non-QM lenders, not Fannie Mae or Freddie Mac. We work with 200+ wholesale lenders to find programs that price competitively for Fresno County properties.
Rates run 1-2% higher than conventional mortgages. You're paying for flexibility. Lenders who understand Central Valley ag cycles price these loans more favorably than coastal-focused shops.
I see Selma borrowers use IO loans two ways: investors buying rentals who plan to cash-out refinance once they add value, or self-employed folks whose income looks low on paper but bank statements tell a different story.
The mistake is ignoring the payment shock when IO ends. If you're buying a $400K property, your payment jumps $1,200-1,500 monthly. Have a clear plan to refinance or sell before that happens.
Compare interest-only to DSCR loans if you're buying rental property. DSCR qualifies you on the property's rent, IO qualifies you on personal income but drops your payment. Pick based on your income documentation.
ARMs also lower initial payments but you're still paying principal. Interest-only gives you maximum monthly savings upfront but zero equity build during the IO period unless property values climb.
Selma's median home price stays below $350K, so you're not typically in jumbo territory. That keeps interest-only rates more competitive than higher-priced Central Coast or Bay Area markets.
Ag-related income is common here. Lenders familiar with Fresno County understand harvest cycles and seasonal cash flow. Generic national lenders often decline what local-focused non-QM shops approve easily.
Your payment jumps 30-40% when principal payments start. Most borrowers refinance or sell before that happens rather than absorb the higher payment.
Yes, through bank statement programs that average your deposits over 12-24 months. This works better than tax returns for self-employed ag borrowers.
They work well if you qualify on personal income. If the property income matters more, consider a DSCR loan instead.
Expect 20-30% down minimum. Investment properties and lower credit scores push you toward the 30% end of that range.
Yes, but lenders scrutinize your exit strategy closely. They want confidence you can handle the payment increase or refinance when IO ends.
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.