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Lemoore sits in Kings County, a market where prices run lower than coastal California. That gap matters for interest-only borrowers.
Lower acquisition costs mean the interest-only structure can free up real cash flow. That's worth something to investors and self-employed buyers here.
680+
Min Credit Score
20%
Min Down Payment
5–10 Years
IO Period Length
Non-QM
Loan Classification
Varies by Lender
Rate Type
Interest-Only Loans in Lemoore
Interest-only loans are Non-QM products. Lenders don't follow standard Fannie Mae rules. Expect stricter requirements.
Most lenders want a 680+ credit score and 20% down minimum. Debt-to-income limits vary by lender — not a government formula.
Local decision guide
Use this guide to connect interest-only loans eligibility, lender expectations, and local market factors before comparing payment options in Lemoore.
Lemoore sits in Kings County, a market where prices run lower than coastal California. That gap matters for interest-only borrowers.
Lower acquisition costs mean the interest-only structure can free up real cash flow. That's worth something to investors and self-employed buyers here.
Interest-only loans are Non-QM products. Lenders don't follow standard Fannie Mae rules. Expect stricter requirements.
Big retail banks rarely offer interest-only products anymore. This is a wholesale and private lender space.
At SRK CAPITAL, we pull from 200+ wholesale lenders. Most borrowers can't access this pool on their own. That's where rate shopping actually happens.
I see IO loans used two ways in markets like Lemoore: investors managing cash flow, and high-income earners keeping liquidity.
The mistake I see most? Borrowers treating the IO period as permanent. Plan for the fully amortized payment before you close.
A DSCR loan lets you qualify on rental income alone. An IO loan lowers your payment but still requires personal income qualification.
ARMs also offer lower initial payments. But IO loans separate interest from principal — a different structure with different risk.
Lemoore Naval Air Station drives steady rental demand. Investors here often run tight monthly margins.
For buy-and-hold investors near the base, IO loans can make acquisition math work short-term. Just model what happens in year 10.
You pay only the interest for an initial period — no principal. Monthly payments are lower, but you don't build equity during that time.
Typically 5 to 10 years. After that, payments reset to cover both principal and interest on the remaining balance.
Yes. IO loans are popular with investors managing cash flow. Expect 20%+ down and a 680+ credit score.
Not always. Many IO lenders accept 12-24 months of bank statements. Full tax returns aren't always required.
Your payment recalculates to fully amortize the remaining balance. That increase can be significant — model it before you close.
For investors with stable tenants and tight margins, yes. Lower payments improve monthly cash flow during the IO period.