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Desert Hot Springs sits in Riverside County, where investors and cash-flow buyers are active. Interest-only loans fit this market well.
Lower initial payments give buyers room to manage holding costs while a property appreciates or generates rental income.
700+
Min Credit Score
20-25% typical
Down Payment
5-10 years
IO Period
Non-QM
Loan Category
Higher than conventional
Rate Type
Interest-Only Loans in Desert Hot Springs
This is a non-QM loan. Lenders won't use standard agency guidelines. Expect stricter credit and reserve requirements.
Most lenders want a 700+ credit score and 12-24 months of reserves. Down payments typically start at 20-25%.
Local decision guide
Use this guide to connect interest-only loans eligibility, lender expectations, and local market factors before comparing payment options in Desert Hot Springs.
Desert Hot Springs sits in Riverside County, where investors and cash-flow buyers are active. Interest-only loans fit this market well.
Lower initial payments give buyers room to manage holding costs while a property appreciates or generates rental income.
This is a non-QM loan. Lenders won't use standard agency guidelines. Expect stricter credit and reserve requirements.
Banks rarely offer interest-only products. Most of these loans come from private and wholesale non-QM lenders.
SRK CAPITAL works with 200+ wholesale lenders. We shop interest-only programs to match your property type and exit strategy.
Interest-only loans aren't for primary buyers stretching their budget. They work for investors who know their numbers.
The IO period typically runs 5-10 years. After that, your payment jumps — plan for that before you close.
A DSCR loan qualifies on rental income, not your personal income. For Desert Hot Springs rentals, that's often a cleaner path.
ARMs offer low initial rates but build equity. Interest-only loans skip principal entirely — different risk, different purpose.
Desert Hot Springs has grown as a short-term rental market, drawing buyers who want low payments while building a portfolio.
Riverside County property taxes add to holding costs. An interest-only payment can offset that pressure in early ownership years.
Investors buying short-term or long-term rentals. Lower payments help during lease-up or renovation phases.
Not during the IO period. Equity only grows if the property appreciates. You're not paying down principal.
Payments reset to include principal. The jump can be significant — budget for it or plan to refinance before then.
Some non-QM lenders allow it. A DSCR structure may actually be cleaner for rental-focused buyers in this area.
Yes, non-QM IO loans carry a rate premium over conventional financing. Rates vary by borrower profile and market conditions.
Plan for at least 20-25%. Some lenders require more depending on the property type and your credit profile.