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Rialto sits in San Bernardino County's Inland Empire — a market where investors and self-employed buyers are active. Interest-only loans fit that profile well.
Lower initial payments give buyers more flexibility. That matters when you're managing cash flow across multiple properties or irregular income.
680+
Min Credit Score
20% typical
Down Payment
5–10 years
IO Period
Non-QM
Loan Classification
Profile & lender
Rates Vary By
Most lenders want a 680+ credit score for interest-only. Some go lower, but expect tighter terms and higher rates.
Down payments typically start at 20%. Reserves matter too — lenders want proof you can cover payments long-term.
Your local bank won't offer this. Interest-only loans live in the non-QM space — that means specialty wholesale lenders.
We work with 200+ wholesale lenders at SRK CAPITAL. Several specialize in non-QM products for Inland Empire borrowers.
Interest-only periods usually run 5 to 10 years. After that, payments reset to fully amortizing — and jump noticeably.
Borrowers who plan to sell or refinance before the reset get the most value. Have an exit strategy before you close.
A standard ARM also has a fixed period with lower initial rates. But an IO loan cuts payments even further by deferring principal.
DSCR loans are often a better fit for pure rentals. IO loans shine when cash flow is the priority over equity building.
Rialto's Inland Empire location draws investors eyeing logistics and warehouse-adjacent residential plays. IO loans help manage carrying costs.
San Bernardino County has active fix-and-hold activity. Investors use IO loans to stay liquid while a property stabilizes.
Most lenders target borrowers with 680+ credit and 20% down. Self-employed buyers and investors are the most common fits.
Payments reset to cover both principal and interest. That means a noticeably higher monthly payment — plan for it.
Yes. Many Rialto investors use IO loans to keep cash flow positive early. A DSCR loan may also be worth comparing.
Rarely. These are non-QM products. You need a broker with access to specialty wholesale lenders to find them.
Not during the IO period. You only build equity through appreciation or when principal payments begin after the IO term ends.
Usually 5 to 10 years, depending on the lender and program. After that, the loan amortizes on the remaining balance.
Interest-Only Loans in Rialto