Question 1

What happens when the interest-only period ends in Imperial?

Accepted Answer

Your payment increases to cover principal and interest on the remaining term. Most loans recalculate over 20-25 years, raising payments 30-50% depending on loan size and remaining balance.

Question 2

Can I refinance before the interest-only period ends?

Accepted Answer

Yes, most borrowers refinance into another interest-only loan or conventional mortgage before the adjustment. You need adequate equity and income to qualify for the new loan.

Question 3

Do interest-only loans work for primary residences in Imperial?

Accepted Answer

They can, but lenders prefer them for investment properties. Primary residence interest-only loans require stronger credit, larger down payments, and more reserves than investment property versions.

Question 4

How do Imperial lenders verify income for interest-only loans?

Accepted Answer

Most use 12-24 months of bank statements for self-employed borrowers. W-2 earners can use paystubs. Asset depletion works when you have significant liquid assets but limited monthly income.

Question 5

What loan amounts qualify for interest-only in Imperial?

Accepted Answer

Most lenders accept $100,000 to $3 million. Imperial's lower property values mean many deals fall in the $150,000-$400,000 range, which most wholesale lenders handle easily.

Interest-Only Loans in Imperial: Lower Payments for Flexible Borrowers