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Chino Hills sits in San Bernardino County with strong demand from higher-income buyers. Interest-only loans appeal here because they buy time before full principal payments kick in.
HousingWire flagged Pennymac TPO expanding their non-QM wholesale suite — that means more lender competition for interest-only borrowers right now.
700+ typical
Min Credit Score
20-25% min
Down Payment
5-10 years
IO Period
Non-QM
Loan Classification
Interest-only loans are non-QM. Lenders want strong credit — typically 700 or above — and meaningful reserves in the bank.
Expect a larger down payment requirement. Most lenders want at least 20% down, sometimes 25% on investment properties.
Most retail banks don't offer interest-only products anymore. You'll find them through wholesale lenders and non-QM specialists.
At SRK CAPITAL, we shop 200+ wholesale lenders. That reach matters on non-QM products where pricing varies widely by lender.
IO loans work best as a deliberate cash-flow tool — not a way to afford more house than you can handle.
The borrowers I see using these correctly are high earners with irregular income, investors, or buyers who park the payment savings elsewhere.
A 30-year fixed gives you predictability. An IO loan gives you lower payments now but higher payments later — make sure you plan for that shift.
DSCR loans serve investors better in some cases. If your property generates rental income, a DSCR loan may qualify you more cleanly.
Chino Hills attracts buyers with higher household incomes and investment property activity. That borrower profile lines up well with IO loan criteria.
San Bernardino County has no special IO loan overlays. Qualification is driven by the lender, not the county.
Most IO loans have a 5 or 10-year IO period. After that, payments reset to cover principal and interest on the remaining balance.
No — you only build equity if the property appreciates. You're not paying down the principal at all during the IO phase.
Yes, for primary, second home, or investment purchases. Expect tighter qualification standards than a conventional loan.
Most non-QM lenders want 700 or higher for interest-only products. Lower scores mean fewer lender options and higher rates.
They carry real payment-shock risk when the IO period ends. They're a fit for specific financial strategies — not a general-use product.
Interest-Only Loans in Chino Hills