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Loomis sits in Placer County, one of the stronger suburban markets outside Sacramento. Prices here aren't cheap, and that's exactly where interest-only loans start making sense.
With higher-priced properties, shaving hundreds off your monthly payment matters. Interest-only gives you that breathing room during the initial period.
700+
Min Credit Score
20%
Min Down Payment
5–10 Years
IO Period Length
Non-QM
Loan Category
12 Months Typical
Reserves Required
Interest-Only Loans in Loomis
Interest-only loans are non-QM products. That means standard agency guidelines don't apply — lenders set their own rules, and those rules are stricter than conventional loans.
Expect lenders to want a 700+ credit score, 20% down minimum, and solid reserves. Strong income documentation is non-negotiable.
Local decision guide
Use this guide to connect interest-only loans eligibility, lender expectations, and local market factors before comparing payment options in Loomis.
Loomis sits in Placer County, one of the stronger suburban markets outside Sacramento. Prices here aren't cheap, and that's exactly where interest-only loans start making sense.
With higher-priced properties, shaving hundreds off your monthly payment matters. Interest-only gives you that breathing room during the initial period.
Interest-only loans are non-QM products. That means standard agency guidelines don't apply — lenders set their own rules, and those rules are stricter than conventional loans.
Your local bank won't touch most interest-only deals. These loans live in the non-QM wholesale space, where specialty lenders price and underwrite them.
We work with 200+ wholesale lenders at SRK CAPITAL. A handful of them do IO loans well — with competitive pricing and realistic guidelines.
Most borrowers come to us asking about IO loans for one reason: cash flow. They want the lower payment now and plan to refinance or sell before principal kicks in.
That strategy works — but only if you account for rate adjustments and market shifts. Build your exit plan before you sign, not after.
A 30-year fixed gives you stability. An interest-only loan gives you a lower payment upfront but more risk over time. Neither is wrong — they serve different goals.
ARMs and IO loans are often paired together. If you're comparing options, DSCR loans are worth a look too if this property generates rental income.
Loomis attracts buyers who want acreage, privacy, and proximity to Sacramento without paying Bay Area prices. Properties here often run higher than the Sacramento city average.
Higher purchase prices mean IO loans can remove a real affordability barrier. For self-employed buyers or business owners in Placer County, this product gets deals done.
Most IO loans have a 5 to 10 year interest-only window. After that, you pay principal plus interest on the remaining balance.
No. You only build equity if the property appreciates. Your loan balance doesn't drop while you're making IO payments.
Yes — many non-QM lenders offering IO products accept 12 or 24 months of bank statements. This is common for self-employed buyers in Loomis.
Most lenders want 700 or higher. Some go down to 680 with larger down payments and strong reserves. Rates vary by borrower profile and market conditions.
They carry more risk than fixed loans if you don't have an exit plan. The payment increase after the IO period can catch borrowers off guard.
Yes. IO loans are used on investment properties, though DSCR loans may offer better terms depending on the rental income. Ask us to compare both.