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Interest-Only Loans in Hanford
Hanford's affordability compared to coastal California makes it attractive for investors and self-employed buyers. Interest-only loans work here when borrowers need cash flow flexibility or plan to improve properties.
These loans let you pay just interest for 5-10 years. Your payment drops 20-40% during that window. After the interest-only period ends, payments jump to cover principal and interest.
Most lenders want 680+ credit and 20-30% down for interest-only products. You'll need real income documentation—bank statements, 1099s, or tax returns showing you can handle the future payment increase.
These aren't conventional loans. You're working with portfolio lenders who price based on your full profile. Stronger credit and larger down payments unlock better rates and terms.
Only specialized non-QM lenders offer interest-only mortgages. Your local bank won't touch these. We work with 15-20 wholesale lenders who actually fund IO loans in Kings County.
Rates run 1-2% higher than conventional mortgages. That's the cost of payment flexibility. Lenders also cap loan amounts differently—some at $2M, others at $4M depending on your scenario.
I close 8-10 interest-only loans monthly. They work for three groups: real estate investors buying rentals, self-employed borrowers with irregular income, and buyers expecting higher earnings soon.
The biggest mistake? Not planning for the payment shock. If you're paying $2,000 monthly interest-only, expect $3,200+ when principal payments start. Run those numbers hard before committing.
DSCR loans beat interest-only for pure rentals because you qualify on property cash flow. ARMs give you lower rates if you just want temporary payment relief. IO makes sense when you need maximum flexibility now.
Investor loans with 20-year amortization split the difference—lower payments than 30-year fixed, but you're still building equity. Interest-only builds zero equity during the IO period.
Hanford's stable agricultural economy supports both owner-occupied and investor interest-only loans. Properties here hold value, which lenders like when underwriting longer interest-only terms.
Watch property taxes in Kings County. Your initial payment savings disappear fast if you underestimate tax increases. Most borrowers here use IO loans for 1-4 unit properties, not single-family primaries.
Your payment increases to cover principal and interest over the remaining loan term. Most borrowers refinance before this happens or sell the property.
Yes, investors use IO loans frequently here. You'll need 25-30% down and the rental income must cover the higher future payment.
No. These non-QM loans don't use mortgage insurance. You avoid PMI but pay higher interest rates instead.
Typically 5-10 years depending on the lender. Some portfolio lenders offer 15-year IO periods for strong borrower profiles.
Most lenders require 680 minimum. Scores above 720 unlock better rates and terms in Hanford's market.
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.