Loading
Interest-Only Loans in Glendale
Glendale's real estate market runs expensive. Interest-only loans let borrowers manage higher purchase prices with reduced monthly outlays during the initial period.
These loans work best for buyers expecting income growth or planning short ownership horizons. The strategy fits Glendale's professional class and investors flipping properties in Brand Park or Rossmoyne.
Most Glendale borrowers use interest-only periods of 5-10 years. After that, payments jump to include principal, sometimes increasing 30-50% depending on the loan structure.
Expect minimum credit scores of 680-700 for interest-only loans. Lenders want strong financial profiles since these carry higher risk than traditional mortgages.
Down payments start at 20% for owner-occupied homes, often 25-30% for investment properties. Reserves of 6-12 months help approval odds significantly.
Income documentation varies. W-2 earners provide standard tax returns and pay stubs. Self-employed borrowers use bank statements or 1099s depending on the lender program.
Interest-only loans live in the non-QM space. You won't find them at Wells Fargo or Chase. We work with specialized lenders who price these individually based on your profile.
Rates typically run 0.5-1.5% higher than standard mortgages. That premium reflects the additional risk lenders take on interest-only structures.
Some lenders cap loan amounts at $2-3 million. Others go higher but require larger down payments. Shopping across our 200+ wholesale lenders matters here because terms vary wildly.
Most borrowers underestimate the payment shock when interest-only periods end. Run the full amortization numbers before committing. A $4,000 IO payment can become $6,000+ overnight.
I see these work well for commission-based earners in Glendale's entertainment and business sectors. They can handle variable income and often refinance before the IO period expires.
Interest-only makes less sense if you're stretching to afford the property. The smaller payment is temporary. You need a clear plan for the payment increase or an exit strategy.
Adjustable rate mortgages offer lower rates without interest-only structures. They suit buyers planning to move within 5-7 years who want gradual payment changes, not sudden jumps.
DSCR loans work better for pure investors. They qualify on rental income instead of personal income, often with simpler documentation than interest-only requires.
Jumbo loans with standard amortization cost less long-term. You pay more monthly upfront but build equity immediately and avoid payment shock later.
Glendale's proximity to Burbank studios and downtown LA attracts high earners with variable compensation. Interest-only loans match their income patterns better than fixed payments.
Property appreciation in neighborhoods like Verdugo Woodlands and Brockmont makes interest-only viable for investors banking on value growth. The strategy assumes you can sell or refinance profitably.
Los Angeles County transfer taxes and potential future wealth taxes affect exit strategies. Factor these costs into your refinance or sale timeline before choosing interest-only.
Your payment increases to include principal, typically jumping 30-50%. Most borrowers refinance before this happens or sell the property.
Not typically. Lenders require 20% minimum for owner-occupied, 25-30% for investment properties in this loan category.
Yes, if cash flow matters more than equity building. Many investors use them to maximize rental income during the IO period.
Expect rates 0.5-1.5% above conventional mortgages. Your credit score, down payment, and property type determine exact pricing.
Absolutely. Many lenders accept bank statements instead of tax returns, which often works better for business owners.
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.