Interest only/partly amortized loans Colorado

4 Replies

I am wondering if anyone knows of any federal banks or lenders that are offering interest only or partly amortized loans.  I do not have the income or the capital to pay the  conventional loan payments on a $600,000 property at the moment and would like to use interest only/partly amortized so that it is more affordable for me until I can afford to pay for a regular conventional loan.  Also, if you know of any bank or lender in Colorado that does interest only or partly amortized loans, that would be even better.  I look forward to hearing from you.

@Dalton Skach   Where to begin, I am sure plenty of responses will tell you why this is a bad idea. Specific to your question, assuming a primary residence - because you didn't mention income from said property - I am not sure loans like this are even legal anymore following the government intervention of the lending world - Dodd Frank.

Hard money lending is not a federal loan, but is what you are describing.  Very high risk, and typically 7-19% interest with 6 month terms-typically with the option to extend for an additional 6 months.  The deal must pencil out as well, to mitigate risk.   

I am doing new builds now, and the construction loans are interest only, 10%  cash equity with 20% equity when complete.  It doesn't sound like you have the income to support this, as the home will need to be refinanced into a permanent product after construction.  

Hard money loans have helped jumpstart peoples real estate endeavors, just make sure you understand all of the risks associated.

Thank you both for the advice.  I did not know that the interest was that high or that the loan term was that short on loans like that.  I am obviously still learning and will look at other alternatives. I appreciate the response.

@Dalton Skach  if you posted a few more details people might be able to give you a few options for what you are trying to do provided it makes sense.

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