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Interest-only loans aren't for every borrower. They work best when cash flow matters more than equity buildup right now.
El Centro sits in Imperial County — an area with agriculture-driven income cycles. Seasonal cash flow swings make interest-only structure worth a serious look.
680+ typical
Min Credit Score
5 – 10 years
Interest-Only Period
Non-QM
Loan Classification
$0 required
Principal During IO
ARM or Fixed IO
Rate Type
Interest-Only Loans in El Centro
These are non-QM loans. That means standard agency rules don't apply. Lenders set their own credit and income requirements.
Most lenders want a 680+ credit score and significant reserves. Expect tighter scrutiny on income documentation than a conventional loan.
Local decision guide
Use this guide to connect interest-only loans eligibility, lender expectations, and local market factors before comparing payment options in El Centro.
Interest-only loans aren't for every borrower. They work best when cash flow matters more than equity buildup right now.
El Centro sits in Imperial County — an area with agriculture-driven income cycles. Seasonal cash flow swings make interest-only structure worth a serious look.
These are non-QM loans. That means standard agency rules don't apply. Lenders set their own credit and income requirements.
Retail banks rarely offer interest-only products anymore. This loan lives almost exclusively in the wholesale and non-QM lending space.
Access to multiple wholesale lenders matters here. Rate and term differences across non-QM lenders can be significant. Rates vary by borrower profile and market conditions.
The interest-only period typically runs 5 to 10 years. After that, the loan fully amortizes — and payments jump. Plan for that reset.
I see borrowers use this for investment properties in Imperial Valley. They want to preserve cash during the hold period and sell before the IO term ends.
A DSCR loan also serves investors in El Centro — but it qualifies on rental income, not personal income. Interest-only adds a cash flow layer on top.
ARMs share some DNA here. But an IO loan specifically delays principal payments. An ARM just adjusts the rate. They're often combined into one product.
Imperial County has a large farming economy. Business owners and farm operators often have variable annual income. Interest-only payments help manage lean months.
El Centro's proximity to the US-Mexico border drives some cross-border investor activity. An IO structure can help international buyers manage payment timing.
Typically 5 to 10 years, depending on the lender and loan structure. After that, payments increase to cover principal and interest.
Not through payments — only through property appreciation. You're paying zero principal during the IO term.
Yes, but lender options are limited. Most IO demand in Imperial County comes from investors, not owner-occupants.
Full doc or 12-24 months of bank statements. Some lenders allow asset depletion for high-net-worth borrowers.
Most IO loans allow it. Confirm with your lender — some have prepayment restrictions in the early years.
Most non-QM lenders want 680 or higher. Lower scores are possible but expect higher rates and stricter terms.