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Interest-Only Loans in Dixon
Dixon buyers choose interest-only loans when they need lower monthly payments upfront or expect income to grow. These work well for self-employed borrowers with variable income or investors banking on property appreciation.
Most Dixon interest-only periods run 5-10 years before switching to fully amortizing payments. The payment jump can be significant, so you need a clear exit strategy before closing.
Lenders want 680+ credit and 20-30% down for interest-only terms in Dixon. Self-employed borrowers typically qualify using 12-24 months of bank statements instead of tax returns.
You'll face higher rates than conventional loans since interest-only products fall under non-QM lending. Most lenders cap loan amounts at $3-4 million for these programs.
Interest-only loans come from non-QM lenders, not your typical bank. SRK CAPITAL shops 200+ wholesale lenders to find the best rate and terms for your situation.
Rates vary by borrower profile and market conditions. Programs differ widely on reserves required, documentation accepted, and how they calculate qualifying income.
I see Dixon borrowers use interest-only for two reasons: freeing up cash for business needs or maximizing investment property cash flow. The worst use is stretching to buy more house than you can afford when payments reset.
Calculate what your payment becomes after the interest-only period ends. If that number makes you nervous, this loan doesn't fit your situation regardless of the initial savings.
Adjustable rate mortgages give you lower payments without the payment shock risk of interest-only loans. DSCR loans work better for pure investment properties since they qualify on rental income, not personal income.
Jumbo loans cost less if you can afford the fully amortizing payment. Interest-only makes sense when you specifically need the payment flexibility, not just a lower rate.
Dixon's agricultural and small business economy creates strong demand for interest-only products. Farmers and seasonal business owners benefit from payment flexibility that matches irregular income patterns.
Property appreciation in Solano County supports interest-only strategies for investors. You can refinance before payment reset or sell if values increase as expected.
Your loan converts to fully amortizing payments over the remaining term. Most borrowers see payments increase 40-60% depending on rates and remaining loan term.
Yes, using 12-24 months of bank statements instead of tax returns. You need 680+ credit and 20-30% down to qualify through non-QM lenders.
They maximize cash flow during the IO period. DSCR loans often work better since they qualify on rental income without personal income documentation.
Most lenders require 680 minimum, with better rates at 720+. Higher scores offset the risk lenders take on interest-only products.
Expect 20-30% down depending on credit and loan amount. Higher down payments sometimes unlock better rates or longer IO periods.
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.