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Interest-Only Loans in Loomis
Loomis attracts buyers with significant liquidity who value cash flow flexibility over immediate equity building.
Interest-only loans work well here for investors banking on Placer County appreciation and high-income earners with irregular compensation.
Most Loomis borrowers using IO loans hold properties 3-7 years, refinancing or selling before the payment adjusts.
This isn't a mainstream product—banks won't touch it. You need a Non-QM lender comfortable with alternative documentation.
Expect 20-30% down minimum. Some lenders want 25% on single-family homes, 30% on investment properties.
Credit scores start at 680, but realistically you need 700+ for competitive rates.
Income verification varies—bank statements, 1099s, or asset depletion depending on the lender's program.
Most programs cap at 10-year interest-only terms before converting to fully amortizing payments.
Interest-only loans live in the Non-QM space, which means pricing and guidelines shift between lenders constantly.
One lender might approve you at 7.5% while another quotes 9% based on how they view your income documentation.
Shopping this loan yourself wastes time—most Non-QM lenders only work through brokers with established relationships.
We track about 15 lenders actively funding IO loans. Three of them dominate Placer County closings.
This loan makes sense if you're holding property short-term or your income spikes irregularly throughout the year.
It's wrong for anyone stretching to afford the home—you're not building equity during the IO period, just delaying higher payments.
We see it work for tech executives with stock compensation, business owners cycling cash through investments, and fix-flip investors.
The payment shock when IO expires catches people off guard. Budget for the fully amortized payment from day one.
ARMs give you a lower rate but require principal payments from month one. Interest-only maximizes cash flow but costs more long-term.
DSCR loans evaluate rental income, not yours—different qualification but similar Non-QM pricing structure.
Jumbo loans offer better rates if you qualify through traditional income documentation and want a 30-year fixed.
Interest-only works when you value liquidity today over total interest paid across the loan term.
Loomis sits in Placer County's foothill corridor where properties hold value through market cycles—critical for IO loan success.
Many buyers here transition from Bay Area markets where IO loans are more common. Expectations around documentation differ in Placer.
If you're buying acreage or homes with ADU potential, some lenders balk at non-standard properties even with 30% down.
Exit strategy matters. Plan whether you're refinancing to conventional, selling, or accepting the fully amortized payment increase.
Your payment converts to fully amortizing over the remaining term. Expect a 35-50% payment increase depending on your original loan structure.
Yes, most Loomis borrowers refinance or sell within 5-7 years. You'll need equity and qualifying income for the new loan.
Absolutely. Investors use them to maximize cash flow and leverage across multiple properties. Expect 25-30% down on rentals.
Typically 1.5-3% higher. Rates vary by borrower profile and market conditions. Non-QM pricing shifts weekly.
Yes, through bank statement or asset-based programs. You'll need 12-24 months of statements showing consistent deposits.
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.