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Interest-Only Loans in San Juan Bautista
San Juan Bautista sits in a unique corner of San Benito County where property types range wildly. Historic homes near the mission, agricultural parcels, and newer builds all trade hands here.
Interest-only loans work best when you're managing cashflow strategically. We see them on investment properties and among borrowers expecting income jumps within a few years.
You'll need 680+ credit and at least 20% down. Some lenders push that to 25% for investment properties or rural parcels.
Income documentation varies by lender. W-2 earners qualify easily. Self-employed borrowers can use bank statements or 1099s through non-QM channels.
Interest-only periods typically run 5, 7, or 10 years. After that, payments adjust to principal-plus-interest and can jump substantially.
Most traditional banks won't touch interest-only loans anymore. You need wholesale non-QM lenders who price risk individually.
We work with about 30 lenders who offer these programs. Rates vary by credit tier and property type. Expect 1-2% above conventional rates.
Portfolio lenders make the call on tougher scenarios — land, unique construction, or properties outside standard appraisal comps.
Most borrowers get these wrong. Interest-only makes sense if you're flipping, expecting a bonus cycle, or managing multiple properties.
It does not make sense if you're stretching to afford the home. When the interest-only period ends, your payment can increase 30-40%.
In San Juan Bautista, we see these on vineyards and larger parcels where owners want payment flexibility while land appreciates. That's the right use case.
An adjustable-rate mortgage gives you lower payments without the conversion cliff. You're still building equity from day one.
DSCR loans work better if you're buying rental property and want set-it-and-forget-it financing. They're fully amortizing from the start.
Jumbo loans may actually cost less if you have strong credit and 25% down. Compare total interest paid over the loan term, not just the monthly payment.
San Juan Bautista properties often need extra appraisal work. Historic designations, ag zoning, and rural parcels all complicate valuation.
Lenders get cautious on smaller markets. Your rate may tick higher compared to properties in Hollister or Gilroy, even with identical credit.
The interest-only structure helps when you're renovating a historic property or developing land. You control cashflow during the value-add phase, then refinance or sell.
Your payment recalculates to include principal over the remaining loan term. Expect a 30-40% increase unless you refinance or sell first.
Yes, but expect 25% down and higher rates. DSCR loans often make more sense for straightforward rental properties.
They can, especially if you're managing seasonal income. Portfolio lenders evaluate these case-by-case based on property type and cashflow.
Most lenders require 680 minimum. Expect better rates and terms above 720, especially on non-standard properties.
Monthly payments start lower, but rates run 1-2% higher. You pay more total interest and build no equity during the interest-only period.
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.