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Seaside sits inside Monterey County — one of California's most expensive coastal markets. Buyers here need every cash flow tool available.
Interest-only loans cut your monthly payment during the initial period. That freed-up cash matters when you're buying near the Monterey Peninsula.
700+
Min Credit Score
20–30%
Down Payment
5–10 Years
IO Period
Non-QM
Loan Type
12+ Months
Reserves Required
Interest-Only Loans in Seaside
Interest-only loans are non-QM products. Lenders set their own standards, but expect a 700+ credit score and solid reserves.
Most lenders want 20-30% down. Self-employed borrowers and high-income earners qualify most often.
Local decision guide
Use this guide to connect interest-only loans eligibility, lender expectations, and local market factors before comparing payment options in Seaside.
Seaside sits inside Monterey County — one of California's most expensive coastal markets. Buyers here need every cash flow tool available.
Interest-only loans cut your monthly payment during the initial period. That freed-up cash matters when you're buying near the Monterey Peninsula.
Interest-only loans are non-QM products. Lenders set their own standards, but expect a 700+ credit score and solid reserves.
Big retail banks rarely offer interest-only products anymore. You need access to wholesale and portfolio lenders.
SRK CAPITAL shops 200+ wholesale lenders. That reach matters for non-QM products like this one in Seaside.
I see these loans work best for buyers with lumpy income — think bonuses, commissions, or seasonal business cash flow.
The risk most borrowers miss: your balance doesn't drop during the interest-only period. Plan for that before you close.
A standard ARM gives you a lower rate upfront but your balance amortizes. An interest-only loan goes further — no principal at all.
DSCR loans serve investors focused on rental income. Interest-only can pair with DSCR structures, but they serve different goals.
Seaside is one of the more affordable entry points in Monterey County. But prices here still run well above state averages.
Military buyers near Fort Ord are common in Seaside. VA loans often beat interest-only products for active-duty and veterans — run both scenarios.
Your payment jumps — you start paying principal and interest on the full balance. Plan for that increase before you close.
Only if the property appreciates. You won't build equity through payments during the IO period.
It works for buyers with strong cash flow who want lower payments now. It's not the right tool for every buyer in this market.
Typically 5 to 10 years depending on the lender. After that, the loan fully amortizes over the remaining term.
Yes. Most lenders start at 700. Some non-QM lenders go lower, but expect a rate premium for it.