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Interest-only loans let you pay just the interest for the first several years. Your principal balance stays flat during that window.
For Fairfield buyers stretching to qualify or managing cash flow, that lower initial payment can make a real difference.
700+
Min Credit Score
20%
Min Down Payment
5–10 Years
IO Period
Non-QM
Loan Classification
Interest-Only Loans in Fairfield
These are non-QM loans. That means stricter lender overlays, not looser ones. Expect credit score minimums of 700 or higher at most wholesale lenders.
Down payment requirements typically start at 20%. Some lenders want more, especially on investment properties.
Local decision guide
Use this guide to connect interest-only loans eligibility, lender expectations, and local market factors before comparing payment options in Fairfield.
Interest-only loans let you pay just the interest for the first several years. Your principal balance stays flat during that window.
For Fairfield buyers stretching to qualify or managing cash flow, that lower initial payment can make a real difference.
These are non-QM loans. That means stricter lender overlays, not looser ones. Expect credit score minimums of 700 or higher at most wholesale lenders.
Most retail banks don't touch interest-only products anymore. You'll find them at non-QM wholesale lenders and portfolio shops.
At SRK CAPITAL, we work with 200+ wholesale lenders. That reach matters when you're shopping a non-QM product with tight availability.
I see borrowers misuse this product. Treating the interest-only period as a long-term strategy — not a bridge — leads to problems.
The borrowers who use it well have a plan. They're investing the payment difference, expecting income growth, or holding short-term.
A 30-year fixed gives you payment certainty. An interest-only ARM gives you lower payments now — with risk attached to both sides.
DSCR loans are often a cleaner fit for Fairfield investors. They qualify on rental income, not personal income.
Fairfield sits between the Bay Area and Sacramento. Some buyers use interest-only to afford more home while waiting on income to climb.
Travis AFB drives steady rental demand in Solano County. Investor borrowers sometimes use interest-only to improve short-term cash flow.
Most loans offer 5 to 10 years of interest-only payments. After that, the loan resets and you pay both principal and interest.
No. You're paying interest only, so your loan balance stays the same. Equity only builds through appreciation.
Yes, but lenders still want strong credit and reserves. W-2 income is fine — this isn't just for self-employed borrowers.
Payments jump significantly. You're now paying off the full balance over the remaining loan term. Plan for that increase.
It can work. Lower payments improve monthly cash flow. But DSCR loans may be easier to qualify for on investment properties.