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Coronado is one of the most expensive zip codes in San Diego County. Properties here routinely push into the millions.
Interest-only loans fit this market well. Lower initial payments help buyers enter at a price point that would crush a standard payment.
700+
Min Credit Score
20–30%
Down Payment
5–10 Years
IO Period
Non-QM
Loan Type
Fixed or ARM
Rate Type
Interest-Only Loans in Coronado
These are non-QM loans. That means standard agency rules don't apply — lenders set their own credit and income requirements.
Most lenders want a 700+ credit score and 20-30% down. Strong reserves matter here. Lenders want proof you can handle the payment shift.
Local decision guide
Use this guide to connect interest-only loans eligibility, lender expectations, and local market factors before comparing payment options in Coronado.
Coronado is one of the most expensive zip codes in San Diego County. Properties here routinely push into the millions.
Interest-only loans fit this market well. Lower initial payments help buyers enter at a price point that would crush a standard payment.
These are non-QM loans. That means standard agency rules don't apply — lenders set their own credit and income requirements.
Banks rarely offer interest-only programs. Most are held by portfolio lenders and private institutions.
At SRK CAPITAL, we work with 200+ wholesale lenders. We find the ones who actually price these loans competitively for Coronado buyers.
Most buyers use the IO period strategically. They invest the payment difference or plan around a liquidity event.
The risk is real though. Once the IO period ends, your payment jumps — sometimes significantly. You need a plan before you close.
A jumbo ARM gives you a lower rate upfront but still requires principal payments. An IO loan keeps the payment floor lower.
DSCR loans serve investors focused on rental income. IO loans serve buyers focused on personal cash flow and liquidity.
Coronado buyers often have complex income: military pensions, investment portfolios, business distributions. IO loans flex with that.
The island's limited housing inventory creates urgency. Having a lower IO payment can make an offer more sustainable at full ask.
Most IO loans offer 5 to 10 years of interest-only payments. After that, the loan recasts and you pay principal plus interest.
Yes. Most IO loans allow voluntary principal payments. You're not locked out — you just aren't required to pay it.
Absolutely. High earners and asset-rich buyers use them regularly. It's about managing cash flow, not avoiding responsibility.
Plan for 700 or higher. Some lenders go lower with strong compensating factors like large reserves or low loan-to-value.
Yes, and it can jump significantly. Your broker should run both payment scenarios before you commit to the loan.
They are non-QM, so yes — fewer lenders offer them. A broker with wide lender access makes a real difference here.