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Interest-Only Loans in Burbank
Burbank's entertainment industry professionals and real estate investors often carry irregular income that doesn't fit traditional mortgage boxes. Interest-only loans match that reality.
These loans work when you expect income growth, plan to flip quickly, or need cash flow flexibility for investment properties. They're a tool, not a solution for stretching affordability.
Most lenders want 700+ credit and 20-30% down. You'll need reserves covering 6-12 months of payments and strong income documentation.
This isn't a loan for marginal borrowers. Lenders assume you can afford the full payment but choose not to make it yet.
Self-employed borrowers qualify through bank statements or asset depletion. W-2 earners need stable income and significant liquidity.
Interest-only loans disappeared after 2008 but returned through Non-QM lenders. You won't find these at Chase or Wells Fargo.
About 30 of our 200+ wholesale lenders offer interest-only terms. Rates run 1-2% above conventional mortgages depending on loan size and down payment.
Expect rates between 7.5-9.5% currently. The interest-only period typically lasts 10 years before converting to fully amortizing payments.
I see three borrower types who benefit: investors maximizing cash flow on rentals, high earners with bonus-heavy comp expecting income jumps, and short-term owners planning to sell before amortization kicks in.
The trap is treating this like an affordability tool. If you need interest-only to make the payment work, you're buying too much house.
Burbank's stable rental market makes these loans practical for investment properties near studios. The monthly savings fund maintenance reserves or additional property acquisition.
Adjustable Rate Mortgages offer lower rates but require full payments from day one. Interest-only gives more cash flow control upfront.
DSCR loans for investors focus on rental income, not personal income. Interest-only can layer onto DSCR for maximum monthly savings on investment properties.
Jumbo loans hit lower rates but demand full amortization. For Burbank's pricier properties, interest-only jumbo programs exist but require substantial down payments and reserves.
Burbank's proximity to Warner Bros, Disney, and Netflix means many borrowers have production deals, residuals, or project-based income. Interest-only fits that payment structure better than traditional mortgages.
Property values near the studios stay stable, making these loans less risky than in appreciation-dependent markets. You're not betting on price growth to refinance.
The city's strong rental demand supports investor use cases. Many buyers purchase near Magnolia Park or the studios specifically for cash flow, not principal paydown.
Your loan converts to fully amortizing payments over the remaining term. Most borrowers refinance or sell before this happens.
Yes. Investment properties are the most common use case, often combined with DSCR qualification for maximum flexibility.
Absolutely. Bank statement programs pair well with interest-only terms for self-employed professionals in entertainment and media industries.
Most lenders want 700+, though some go to 680 with larger down payments. Higher scores unlock better rates.
Yes, expect 1-2% above conventional rates. You're paying for payment flexibility and non-QM underwriting.
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.