Do fixed rate interest only loans exist?
We want to do a 3-5 year fixed rate interest only / 30 year loan for 1-1.5 million on an investment property single family home.
Does this exist? I was told all interest only loans are adjustable rate from day one?
Any suggestions? We are trying to purchase a single family home to fix up and hold for up to 2 years and then sell it. We have excellent credit and income can be documented. Our Loan to debt ratio will be high and we hope to get 0% down.
Zoey
Yes, these types of loans exist. You can get almost any product interest only these days. For example, in your case, you could get a 3 year ARM (fixed for 3 years, then adjustable), that is on a 30 year term. This would be interest only for the fixed period.
The Option ARM might also be worth considering.
Interest Only (I/O) loans are available in a wide variety of terms. 2/3/5/7/10 year ARM’s. The rate is fixed for the specified Arm period and would then adjust based on the guidelines at the end of the term. They are all amortized over 360 months.
Generally these ARMs are based off of the Treasury or LIBOR indexes.
Mark D. Haas
Me and my g/f are looking at a house to buy. It is a foreclosure that they are asking $140,000 for. It needs about $10,000 in repairs. We are thinking of offering $90k for it and live in it till we get it fixed up instead of paying rent.
What im wondering is, can i get an interest only loan with zero down? I have good credit with a somewhat high debt-income ratio. She has a house with a 100,000 balence from a past relationship that she pays nothing on. Its been court orderd to sell and get her name off of it. We are wondering if this will also affect us on getting a loan. She currently pays the $650 rent payment, so we should be able to do a interest only loan for around $800 or so. If somebody thinks they can help, please let us know.
THanks