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McFarland sits in Kern County's agricultural core. Buyers here often have irregular income — and interest-only loans are built for exactly that.
Lower initial payments give borrowers breathing room during slow seasons. That flexibility is rare with conventional financing.
Typically 680+
Min Credit Score
20%+ common
Down Payment
5–10 years typical
Interest-Only Period
Non-QM
Loan Category
Varies by lender
Rate Type
Interest-Only Loans in McFarland
Interest-only loans are non-QM. That means lenders skip the standard debt-to-income rules used for conventional loans.
Expect lenders to require strong reserves, a credit score above 680, and a meaningful down payment — often 20% or more.
Local decision guide
Use this guide to connect interest-only loans eligibility, lender expectations, and local market factors before comparing payment options in McFarland.
McFarland sits in Kern County's agricultural core. Buyers here often have irregular income — and interest-only loans are built for exactly that.
Lower initial payments give borrowers breathing room during slow seasons. That flexibility is rare with conventional financing.
Interest-only loans are non-QM. That means lenders skip the standard debt-to-income rules used for conventional loans.
Retail banks rarely offer interest-only products. Wholesale lenders that specialize in non-QM are where these deals actually get done.
At SRK CAPITAL, we work with 200+ wholesale lenders. That reach matters when you need a niche product like this in a smaller market.
Interest-only loans work best when you have a clear plan. Investors use them to maximize cash flow. Self-employed borrowers use them to manage payment timing.
The interest-only period typically lasts 5 to 10 years. After that, the loan recasts — payments jump to cover principal too. Know your exit before you sign.
A standard ARM also offers lower early payments — but still requires principal from day one. Interest-only goes further, deferring principal entirely.
DSCR loans are often the better call for investors buying rental property. Interest-only can pair with DSCR, but they serve different purposes.
McFarland's borrower base includes seasonal workers, farm operators, and small business owners. Income documentation here often doesn't fit a W-2 mold.
Interest-only loans accept bank statement income in many cases. That makes them one of the few realistic options for non-traditional earners in this market.
Not during the initial period. Once that period ends, your payment adjusts to cover both principal and interest.
Yes. Many non-QM lenders accept 12–24 months of bank statements. This is a key feature for self-employed borrowers in McFarland.
Most non-QM lenders want 680 or higher. Some go lower with stronger reserves or a larger down payment.
It carries real risk if you have no exit plan. When the loan recasts, payments increase — sometimes significantly. Rates vary by borrower profile and market conditions.
DSCR qualifies you based on rental income. Interest-only is a payment structure. They can overlap, but they solve different problems.
Most programs allow it. Paying extra reduces your balance before the recast, which lowers that future payment spike.