Loading
Loading
Interest-only loans let you pay just the interest for an initial period — often 5 to 10 years. Monthly payments stay low upfront, then adjust when principal kicks in.
In Galt, these loans attract investors and high-income borrowers who want cash flow flexibility. They are non-QM loans, meaning standard agency guidelines do not apply.
700+
Typical Min Credit Score
20–30%
Typical Down Payment
5–10 Years
Interest-Only Period
Non-QM
Loan Classification
12 Months
Reserves Required
Interest-Only Loans in Galt
Lenders typically want a 700+ credit score for interest-only loans. Some go lower, but you will pay for it in rate.
Expect to show strong reserves — often 12 months of payments in the bank. Lenders see these as higher-risk loans and underwrite accordingly.
Local decision guide
Use this guide to connect interest-only loans eligibility, lender expectations, and local market factors before comparing payment options in Galt.
Interest-only loans let you pay just the interest for an initial period — often 5 to 10 years. Monthly payments stay low upfront, then adjust when principal kicks in.
In Galt, these loans attract investors and high-income borrowers who want cash flow flexibility. They are non-QM loans, meaning standard agency guidelines do not apply.
Lenders typically want a 700+ credit score for interest-only loans. Some go lower, but you will pay for it in rate.
Retail banks rarely offer interest-only products anymore. You need access to non-QM wholesale lenders who still build these programs.
At SRK CAPITAL, we work with 200+ wholesale lenders. That reach matters here — interest-only programs vary widely in rate, term, and qualifying criteria.
Most borrowers who come to me for interest-only loans are either investors managing cash flow or high earners with variable income. W-2 borrowers rarely need this product.
The risk is real — your balance does not shrink during the interest-only period. Make sure you have a clear plan before the principal payments hit.
An ARM (adjustable-rate mortgage) also offers lower initial payments, but you are still paying principal from day one. Interest-only goes further — no principal at all upfront.
DSCR loans qualify on rental income, not personal income. If you are buying investment property in Galt, DSCR may get you approved more cleanly than interest-only.
Galt sits in Sacramento County's southern edge. It draws investors looking at value plays compared to pricier Sacramento submarkets.
Interest-only loans can make sense here for buy-and-hold investors who want to keep monthly costs low while a property appreciates. As of April 2026, confirm current non-QM rate conditions before locking. Rates vary by borrower profile and market conditions.
Investors and self-employed borrowers with variable income benefit most. W-2 earners with steady income rarely need the payment flexibility.
No. You are only paying interest, so your balance stays flat. Equity only builds if the property value rises.
Typically 5 to 10 years, depending on the lender and program. After that, payments reset to include principal.
Most non-QM lenders want 700 or above. Lower scores are possible but expect a higher rate.
Some non-QM lenders allow it, but DSCR loans are usually a cleaner path for qualifying on rental income.
They carry more payment shock risk when principal kicks in. Go in with reserves and a repayment plan.