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Interest-Only Loans in Corte Madera
Corte Madera buyers often use interest-only loans to afford Marin's elevated price points without maxing out monthly budgets. These loans work well when you expect income growth or plan short-term ownership.
The structure lets you pay only interest for 5-10 years before principal payments kick in. Monthly savings can range from $800 to $2,500 depending on loan size.
This isn't a conventional loan product. You're working with non-QM lenders who underwrite differently than Fannie or Freddie.
Most Corte Madera borrowers who choose this route have variable income, stock compensation, or investment portfolios they don't want to liquidate.
Expect 20-30% down minimum. Lenders want substantial equity cushion since you're not paying principal initially.
Credit scores start at 660, but better rates kick in above 700. You'll need documented assets covering 6-12 months of full payments.
Income verification ranges from full docs to bank statement programs. Self-employed buyers often qualify easier here than with conventional loans.
Debt-to-income ratios matter less than asset depth. Lenders focus on reserves and equity position more than monthly income calculations.
Only 15-20 of our 200+ lenders offer interest-only programs. These are portfolio lenders and private money sources, not agency lenders.
Rate spreads between lenders hit 0.75-1.5% on identical scenarios. Shopping this loan type saves real money.
Some lenders cap at $2 million, others go to $5 million or higher. Loan size dramatically affects which lenders compete for your deal.
Prepayment penalties are common for 3-5 years. Not every lender structures them the same way, so terms matter as much as rate.
This loan works for three Corte Madera profiles: tech employees waiting for vesting schedules, business owners with lumpy income, and investors buying rental property.
The biggest mistake is treating this like a permanent payment. Year 11 hits and your payment jumps 30-50% when principal amortization starts.
Smart borrowers have an exit plan: refinance before amortization, sell the property, or ensure income growth covers the payment increase. No plan means trouble.
We've seen buyers save $30,000-$60,000 in the first five years, then use those savings to accelerate other financial goals or invest elsewhere.
Interest-only vs ARM: ARMs adjust rate but still require principal payments. Interest-only keeps payment lower initially, even with fixed rate options during the IO period.
Interest-only vs jumbo: Traditional jumbos offer lower rates but higher payments. You trade rate for cash flow flexibility with interest-only.
DSCR loans also use non-QM underwriting, but they're rental-focused. Interest-only works for primary residences when you need payment relief.
Most borrowers who compare these ultimately choose based on timeline. Staying under 7 years favors interest-only. Longer hold times favor traditional jumbo.
Corte Madera properties include everything from Town Center condos to Greenbrae hills estates. Interest-only makes more sense on higher-end purchases where payment reduction matters.
Marin County property taxes run 1.1-1.2% annually. That cost doesn't change with interest-only, but lower mortgage payments create room to cover rising tax bills.
The local market sees buyers who work in SF tech but want Marin schools and space. Interest-only bridges the gap between Bay Area income volatility and Marin price stability.
Multiple offers still happen on well-priced homes here. Interest-only approval doesn't make you a weaker buyer if your down payment and reserves are solid.
Your payment increases to cover principal and interest over the remaining loan term. Most borrowers refinance or sell before this happens.
Yes, most lenders allow extra principal payments without penalty during the IO period. Check prepayment terms for refinancing restrictions.
Yes, if you have strong down payment and reserves. Sellers care about closing certainty, not your payment structure.
Minimum 660, but 700+ gets better rates and terms. Higher scores offset the non-QM risk premium lenders charge.
Depends on the lender, but most cap between $2-5 million. Higher amounts require specialized portfolio lenders.
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.