Got into contract a few days ago on a great property for STR. My goal is to maximize cash flow and this property is in a very seasonal market. Therefore an interest only loan would be ideal... problem is, I've only been able to find Jumbo IO loans but I only need a smaller loan amount under $500k. No luck so far even offering to put 40% down payment and with perfect credit.
Does anybody know of any conforming IO products out there?
Other financing ideas?
Hi @Ilan M Aliphas ! The only time I've consistently seen banks willing to go IO, especially in "weird" markets like right now, is when there is capital improvement in the plan. In this case the bank will treat it as a construction loan, which is IO for a set period of time, and after that it either baloons or recasts into a P&I commercial loan.
@Ilan M Aliphas ..can you send more information? If you're open to structure and terms, there might be a loan program for you, but it's going to be navigating to find it. I/O in the conforming space, under $500k or non-jumbo is not really going to happen unless you're flexible. Thanks,