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Interest-Only Loans in Suisun City
Suisun City attracts buyers who need short-term payment flexibility. Many come from the Bay Area or work at Travis Air Force Base.
Interest-only loans let you pay just the interest portion upfront. Principal payments start later, often after 5 or 10 years.
This structure works for buyers expecting income growth or planning to sell before principal payments kick in. It's not for everyone.
Most lenders want 680+ credit and 20% down minimum. Some require 25-30% for investment properties.
You need documented income that supports the full payment amount, not just the interest-only portion. Lenders underwrite to the fully-amortized payment.
Self-employed borrowers qualify through bank statements or asset-based programs. W-2 earners use standard documentation.
Interest-only loans are non-QM products. You won't find them at Wells Fargo or Chase anymore.
We work with specialty lenders who price these loans based on your profile. Rates run 0.5-1.5% higher than conventional mortgages.
Some lenders cap the interest-only period at 5 years. Others go to 10 years. The longer the IO period, the higher the rate.
Portfolio lenders offer the most flexibility on documentation and down payment. Rates vary by borrower profile and market conditions.
Most buyers who choose interest-only fall into three camps: high earners with variable income, investors banking on appreciation, or Bay Area buyers stretching to afford Suisun City.
The biggest mistake is ignoring payment shock. When the IO period ends, your payment jumps 30-40%. Plan for that or sell before it hits.
I've seen these work well for tech workers with stock compensation coming in a few years. They refinance or pay down principal once equity vests.
ARMs also offer lower initial payments, but you're still paying principal. Interest-only gives you maximum cash flow flexibility upfront.
DSCR loans make sense for investment properties if rental income covers payments. Interest-only helps when you need lower payments to meet debt ratios.
Jumbo loans sometimes offer IO options for high-balance purchases. That combination works in Solano County where some homes push above conforming limits.
Suisun City sees buyers who work in the Bay Area but can't afford San Francisco or Oakland prices. Interest-only helps them qualify for more house.
Travis Air Force Base personnel sometimes use IO loans before PCS moves. They plan to sell within 3-5 years anyway.
The Waterfront District attracts buyers betting on long-term appreciation. IO payments free up cash for renovations or other investments.
Properties near Highway 12 and I-680 draw commuters. Lower initial payments offset longer commute costs for some buyers.
Your payment jumps to cover both principal and interest over the remaining loan term. Most borrowers refinance or sell before this happens.
Yes, most lenders allow extra principal payments. You're not required to, but it reduces payment shock later.
Absolutely. Lower payments improve cash flow and debt-to-income ratios for rental properties.
Most lenders require 680 minimum. Higher scores unlock better rates and lower down payment requirements.
Most are adjustable after the IO period. Some lenders offer fixed-rate options at higher rates.
Expect 20% minimum for primary homes, 25-30% for investment properties. Larger down payments improve pricing.
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.