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Calexico sits on the US-Mexico border in Imperial County — a market with unique cash flow dynamics. Interest-only loans fit that profile.
Lower initial payments free up capital for investors and buyers managing multiple financial obligations at once.
680–720
Min Credit Score
20–30%
Typical Down Payment
5–10 Years
Interest-Only Period
Non-QM
Loan Classification
6–12 Months
Reserves Required
Interest-Only Loans in Calexico
Interest-only loans are non-QM. That means stricter lender overlays, not looser ones. Expect credit score minimums around 680-720 depending on the lender.
Lenders want to see significant reserves. Six to twelve months of payments in the bank is a common baseline requirement.
Local decision guide
Use this guide to connect interest-only loans eligibility, lender expectations, and local market factors before comparing payment options in Calexico.
Calexico sits on the US-Mexico border in Imperial County — a market with unique cash flow dynamics. Interest-only loans fit that profile.
Lower initial payments free up capital for investors and buyers managing multiple financial obligations at once.
Interest-only loans are non-QM. That means stricter lender overlays, not looser ones. Expect credit score minimums around 680-720 depending on the lender.
Most retail banks won't touch interest-only loans. This is wholesale and non-QM lender territory. That's exactly where we operate.
With access to 200+ wholesale lenders, we can shop this product across multiple underwriting guidelines. One lender's decline is another's approval.
Interest-only makes sense in specific situations — not as a budget workaround. We see it work best for investors and high-income borrowers with irregular pay.
The risk most borrowers miss: when the interest-only period ends, your payment jumps. Budget for the fully amortized payment before you commit.
A DSCR loan might serve Calexico investors better if the property cash flows well. DSCR qualifies on rent, not personal income.
ARMs also offer lower initial rates but amortize from day one. Interest-only beats ARMs on payment size — at the cost of zero equity buildup.
Calexico's cross-border economy means some buyers have income from Mexican business operations. Interest-only non-QM lenders can often work with that profile.
Imperial County property values differ sharply from coastal California. Loan amounts here may be lower, but lender minimums on non-QM still apply.
Most lenders want 680 or higher. Some go up to 720 minimum depending on the loan size and down payment.
No. You pay zero principal during that phase. Equity only grows if the property appreciates.
Some non-QM lenders accept foreign income with proper documentation. It depends heavily on the lender's guidelines.
Typically 5 to 10 years. After that, payments reset to fully amortizing — principal plus interest.
It can be, if your exit strategy is clear. Short-term holds or fix-and-flip scenarios are where this product tends to make sense.
Conventional loans are QM products with strict guidelines. Interest-only is non-QM — more flexible terms, but tighter lender-specific requirements.