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Moreno Valley sits in Riverside County's inland market. Buyers here often look for ways to keep monthly costs down while building equity over time.
Interest-only loans let you pay just the interest for the first several years. That lower payment can matter a lot in a market where cash flow is tight.
700+
Min Credit Score
20%+
Typical Down Payment
5–10 Years
Interest-Only Period
Non-QM
Loan Classification
Interest-Only Loans in Moreno Valley
Interest-only loans are non-QM. That means lenders set their own rules. Expect stricter credit requirements than a conventional loan.
Most lenders want at least a 700 credit score and a strong down payment — often 20% or more. Debt-to-income ratios are scrutinized closely.
Local decision guide
Use this guide to connect interest-only loans eligibility, lender expectations, and local market factors before comparing payment options in Moreno Valley.
Moreno Valley sits in Riverside County's inland market. Buyers here often look for ways to keep monthly costs down while building equity over time.
Interest-only loans let you pay just the interest for the first several years. That lower payment can matter a lot in a market where cash flow is tight.
Interest-only loans are non-QM. That means lenders set their own rules. Expect stricter credit requirements than a conventional loan.
Most retail banks don't touch interest-only products anymore. You'll find them at wholesale lenders and non-QM specialists.
That's where working with a broker pays off. We shop across 200+ wholesale lenders to find who's actually pricing these well in Riverside County.
This loan fits a specific borrower. Investors, high-income earners with variable pay, and buyers who want to deploy cash elsewhere are the best candidates.
W-2 borrowers planning to stay in a home long-term should think twice. Once the interest-only period ends, payments jump — sometimes significantly.
Compare this to a DSCR loan if you're buying a rental in Moreno Valley. DSCR qualifies you on rental income, not personal income — often a cleaner fit.
An ARM also offers lower initial rates. But an interest-only ARM stacks both benefits — and both risks. Rates vary by borrower profile and market conditions.
Moreno Valley has a strong rental market. Investors buying here often use interest-only loans to maximize monthly cash flow on single-family rentals.
Riverside County's price points make interest-only products more accessible than in coastal markets. But the strategy still depends on your hold period and exit plan.
Typically 5 to 10 years. After that, you repay principal and interest — and your payment goes up.
Not from payments. You only build equity if the property appreciates. Principal balance doesn't decrease.
Yes. Investors often use it to lower carrying costs. A DSCR loan may also be worth comparing for rentals.
Most non-QM lenders want 700 or higher. Some go lower with larger down payments or more reserves.
Some lenders offer it for primary residences. Qualification is stricter and not all lenders participate.
You keep the payment savings from the IO period. Check for prepayment penalties before closing.