Interest Only Loans

Interest Only Loan is one in which the borrower has the option to pay only the interest on the principal amount borrowed for a predetermined period of time. This interest-only payment term is between 3 and 10 years. After the term is over, the payment converts to a principal and interest payment that is fully amortized over the remaining term of the mortgage.

Lending Criteria Description
Purpose:
  • Purchase and Refinance
Property Type:
  • Single Family Residence (1-4)
  • Condominium
  • Townhomes
  • Planned Unit Developments
Max Loan-to-Value: (1-2-unit Primary)
  • 80% LTV: $35,000 – $650,000
  • 70% LTV: $650,001 – $1,000,000
  • 65% LTV: $1,000,001 – $1,500,000
Qualifying:
  • 20 years fully amortized
  • 3/1: + 6% above start rate, or fully index rate, whichever is greater.
  • 5 / 7 & 10: + 2% (same as above)
Minimum Credit Scores:
  • 720
Prepayment Penalty:
  • None
Maximum Debt-to-Income (DTI):
  • 45%
Recourse:
  • Yes
Broker Fee:
  • None
Terms:
  • 3 / 5 / 7 / 10-Years ARM’s
Funds to Close / Reserves:
  • <$250,000, or 24 Months PITIA
Income Requirements:
  • Minimum household of $150,000
Closing Timeframes:
  • 45-60 days
Amortization:
  • 30-Years
Collateral:
  • 1st Trust Deeds
Seasoning:
  • Minimum 6 Months
Other Costs:
  • All 3rd Party Fees
This information is NOT a loan approval or commitment to lend. The actual loan amount, interest rate, fees, costs and monthly payment on your specific loan transaction can vary and will depend on your choice of loan product and your unique credit profile. Loans (in CA) will be made pursuant to BRE License #02001852 & NMLS License #1463667. Loan Brook, Inc. is an equal housing lender