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Orange County is expensive. Carrying a full principal-and-interest payment from day one isn't always the right move.
Interest-only loans let you pay just the interest for an initial period — typically 5 to 10 years. That cuts your monthly payment significantly upfront.
Typically 700+
Min Credit Score
20%+ common
Down Payment
5–10 years
IO Period Length
Non-QM
Loan Classification
This is a non-QM loan. That means it falls outside standard Fannie Mae and Freddie Mac guidelines.
Lenders typically want a 700+ credit score, strong reserves, and a solid debt-to-income ratio. Expect larger down payments — often 20% or more.
Most banks won't touch interest-only loans. They're a wholesale product — which is exactly where SRK CAPITAL operates.
We have access to 200+ wholesale lenders, and a meaningful number of them offer interest-only programs. Rates vary by borrower profile and market conditions.
The borrowers who use this loan well are deliberate about it. They have a plan for when the interest-only period ends.
After the initial period, payments reset to fully amortizing — principal plus interest over the remaining term. That jump can be significant. Know it before you sign.
ARMs and interest-only loans are cousins but not twins. An ARM adjusts your rate. Interest-only adjusts what you're paying toward.
DSCR loans are better for rental properties where cash flow matters most. Interest-only can work for both investment and primary use — it depends on your goals.
Orange sits in a county where property values stay stubbornly high. Buyers here often need every payment advantage available.
As of April 2026, investors and self-employed buyers in Orange are among the most common interest-only borrowers we see. Standard W-2 buyers rarely qualify or need it.
Not through payments. You build equity only if the property appreciates. Principal balance stays flat until the IO period ends.
Most programs run 5 or 10 years. After that, your payment resets to cover principal and interest for the remaining term.
Yes, but qualifying is harder than with a conventional loan. Lenders scrutinize income and reserves closely on primary IO loans.
Most wholesale lenders want 700 or above. Some go lower with compensating factors like high reserves or a large down payment.
It carries real risk if you have no plan for the payment reset. Used strategically, it's a tool — not a trap.
Interest-Only Loans in Orange