Lower Payments While The Interest Only Period Lasts.
Interest-only options on loans from $150,000 to $3.5 Million, available on owner-occupied, second home, and investment property.
Quick answer
Saxton Mortgage does. At least one program we offer has interest-only options on a primary residence, second home, or investment property, from $150,000 to $3,500,000, starting at a 700 credit score. First-time homebuyers are not eligible for interest-only on that program.
Payment flexibility, by design.
However you want to structure the payment, there’s likely a path that fits.
- You qualify on the fully amortizing payment, not the interest-only one*
- Interest-only available on fixed and adjustable
- Borrowers managing cash flow
- DTI can reach 55% on an interest-only loan at one program*
- ITIN borrowers can choose interest-only with a 680 score*
- Not offered to first-time homebuyers at one program*
- Cash-out refinances can carry an interest-only period*
- Jumbo interest-only starts at 660 credit on balances through $2,000,000*
Fixed and adjustable options
Interest-only on fixed and adjustable options
Rental loans qualify on the IO payment
Rental income financing also carries interest-only
Underwriters review IO ARMs by hand
Super jumbo amounts on primary homes
What is the Saxton Interest Only Loan?
An interest-only period on both owner-occupied and rental financing
The Saxton Interest Only Loan carries an interest-only period on eligible fixed-rate and adjustable-rate options, on owner-occupied, second home, and investment property.
With an interest-only loan, the payment covers interest alone for an initial period, and then the loan fully amortizes over the remaining term. At one program the qualifying ratios use the fully amortizing payment for the term left once the interest-only period ends.
Reserves are measured two ways. One program bases reserves on the interest-only payment, while a jumbo program qualifies both DTI and reserves on a fully amortizing payment, so plan for the larger number there.
Why choose the Saxton Interest Only Loan?
Built for borrowers who want a lower payment while the interest-only period runs.
The Full Payment Sets Approval
Approval rests on the fully amortizing payment, not the lower interest-only amount. At one program DTI may still go as high as 55% on an interest-only loan.
Not For First-Time Buyers Here
One program allows first-time homebuyers on its non-QM loan but does not let them use the interest-only feature. Investment purchases are also off the table for them there.
Reserves Run Deeper On ARMs
At one program, adjustable interest-only loans need 24 months of post-closing reserves, two FICO scores for every borrower, and two years of documented employment history.
Bridge Periods
Carry a lower payment through a transition you already see coming.
Jumbo Limits On Use
One jumbo interest-only program excludes investment properties and cash-out refinances. Second homes are limited to one unit, and West Virginia loans are not permitted there.
Interest Only, Then Amortizing
The interest only period runs first, and the loan converts to a fully amortizing payment when it ends.
Hear From Homeowners Like You
Frequently Asked Questions
Straight answers about interest only structures.
Saxton Mortgage does. At least one program we offer has interest-only options on a primary residence, second home, or investment property, from $150,000 to $3,500,000, starting at a 700 credit score. First-time homebuyers are not eligible for interest-only on that program.
Expect to qualify on the fully amortizing payment rather than the interest-only amount. At one program DTI can go up to 55% on an interest-only loan, and the minimum credit score for the feature is 680.
It depends on the program. One non-QM program sets 680 as the floor for the interest-only feature, while a jumbo program begins at 660 for balances through $2,000,000 provided you hold 6 months in reserve.
Yes. On rental loans that qualify on rent, one program computes the ratio with the interest-only payment and sets a 680 score and a 1.00 ratio as minimums for the feature. One jumbo interest-only program does not allow investment properties at all.
Not always. One non-QM program accepts first-time homebuyers but does not allow the interest-only feature for them. We check the guidelines for your exact situation before quoting any option to you.
At one program, yes: interest-only is permitted on cash-out refinances. One jumbo interest-only program excludes cash-out entirely, so the answer depends on your loan size and which program fits your file.
One program bases reserves on the interest-only payment. A jumbo program uses a fully amortizing payment for DTI and reserves, and another requires 24 months of reserves on adjustable interest-only loans.
Yes, at one program. Its ITIN matrix includes interest-only versions of fixed and adjustable products with a 680 minimum score, and borrowers qualify on the fully amortized payment rather than the interest-only amount. Learn more about Cash-out refinancing.
Find out what you qualify for
Share your loan amount, property type and how you earn income, and we will tell you which interest-only option, if any, your file fits. Getting pre-qualified is the first step.
Get Pre-Qualified- Consumer Financial Protection Bureau, mortgages
- Consumer Financial Protection Bureau, buying a house: tools and resources for homebuyers
*Loan amounts, rates, terms, and down payment requirements are subject to credit approval, income and asset verification, and program eligibility. Down payment and cash-out limits vary by occupancy, credit score, and documentation type. Not all applicants will qualify. Saxton Mortgage, LLC is an Equal Housing Lender.