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40 Year Interest Only

  • How does this work?
    • The first 10 years are interest only, followed by a 30-year fixed in years 11-40 (principal & interest)
  • Does the rate ever change?
    • No, it is FIXED the entire 40 years
  • Can I pay the principal down in first 10 years?
    • Yes, you can!
  • Any prepayment penalties?
    • The standard is 3 years
    • The penalty is equivalent to 6 months of interest payments
    • There is no penalty if you decide to sell, only if you refinance or pay off the loan in full
    • During the first 3 years, you are allowed to pay up to 20% of the principal down with no penalty
  • Any PMI for 15% down?
    • None
  • Can I use this to finance a manufactured home?
    • Unfortunately not
  • Can I use this on a refinance?
    • Absolutely! Cash-out and Rate and term!
  • What properties are these available for?
    • Single family, condos, 2-4 units
  • Does it have to be investment property?
    • This is available on primary residences, second homes, and investment properties!
  • Can I close in a LLC, corporation, trust, or other entity?
    • Yes! We just need to make sure the majority owners are on the loan, or members are on
      the loan.