what is the advantage of an intrest only mortgage loan, and are they easier to qualify for?
458072
As I say very often, be careful with who you are getting your answers from on this site....some of the answers that you have received are not exactly true.\n\nFirst, the advantage of the interest only loan is the fact that you will be paying less.  That has been established on here already.  Although whether the property is a rental property or the one you are living in really has no bearing on whether the loan is good or bad.  The person paying the mortgage back is going to determine that.  It does not matter what type of property is.\n\nAs far as qualification, yes, they are easier to qualify for.  NOT because you are only paying the lender their interest; but because your debt ratio will be lower than a normal type mortgage payment requiring Principal and Interest (P&I).\n\nThese loans are great for people that have investment properties and they need some flexibility; for people with high yeilding investments that they are investing the difference of the mortgage payments into...etc.  These loans are NOT for those wanting to qualify for more house.  There is not a more stupid move to make and if a lender or a salesperson is telling you this, run as far as you can cause they are misguiding you.\n\nIf you would like more information on these types of loans or others, please feel free to contact me at timothy.kazee@americanhm .com and we can talk more.  \n\nTim Kazee
245722
Possibly the problem is security.  Have the security to make the loan possible.  The lender may not want to take a risk on you because of no stability, job time, time of residency, or credit issues.  Try to see about getting a co-signer or a guaranteeor to the loan.
84967
If you have clean credit then you can get 100% financing from any mortgage company. Make them look at a 100% one loan, and an 80/20. The reason for this is so you an see what is cheaper to do, considering you will more than likely have MI.
214278
Possibly only one of you could get the loan, although both would sign the mortgage.  My wife had no credit history when we bought, so I took the loan and both of us took the mortgage.\n\nIn some states and under some circumstances, the bank might demand both of you to qualify.
966780
Only through experience.  I am a mortgage professional too, with another company.  I'm still pretty new at it;  a lot of it is plain dumb luck.  The other half is getting the borrower to qualify under all the terms of the loan (income, credit, appraisal, w-2, DTI, etc).  It is extremely hard sometimes, and you get a lot of "fallout".   And, it depends on your compensation as well.  But as far as terminology and correspondent lenders, qualifying and amortization, those "complicated" things get easier over time.
446801
depending on your credit scores and payment history all conforming lenders and many sub-prime lenders have interest only mortgages. A word of caution. They will recast the loan at some point and you will have to pay the piper. So make sure your home is in an appreciating market not one that is stagnate or even worse declining
895577
If you are trapped in an interest only mortgage you will have to pay penalties for paying off the principal.  It is not a good idea.  Hopefully your loan guy is part of a big bank.  That is where you will get the best deal with no funny business!
419903
With no deposit loans the interest rate is higher (to cover their losses) and you need REALLY good history, 3 years in the same job, good income and NO defaults on your credit statement.  If you meet these critera then it may be good not having to put any money in.\n\nBut another option is to go through Keystart Loans, they only need a $2000 or 2% deposit depending on which is higher and you can use your first home owners grant as that deposit.\n\nMost other banks wont allow you to use your grant and you just get the money later on.
316870
There are loans that do not require any documentation, or only require verification of assets.  You will need good credit, and might need to put money toward a down payment to keep the interest rate at a decent level.  Call a mortgage company.
282483
Try getting a small signature loan through a credit union.  An unsecured loan has less stringent requirements for qualification.
210067
I looked into interest-only loans for investing.  I own 5 investment properties, 3 with no mortgages, 2 with just under 27 years left on 30 year fixed.\n\nIn my opinion, interest-only loans are designed to rip-off people who aren't very good at math, or those who have too much money.  Which are you?  If you are neither, compare the various loans looking at parameters that are important to you.  For me, it was the amount I paid in interest and the amount of the total payment (P&I).  I would have done shorter term than 30 years, but with vacancy, I needed a sure thing.\n\nI don't like debt very much, that's why I bought three of the houses with cash.  When I recently re-fied the 2 with mortgages, I kept the existing terms of ~27 years instead of extending out to 30 years.  I am also paying extra principal on the one that I intend to own and keep in the family for generations.  I hope to have that paid off in about 10 years, savings about 100K in interest.  Overall, I am not yet cash flow positive except on the 3 without mortgages, just one more reason I prefer cash.  BTW, these are in Pittsburgh, PA, where you can (or could 2-3 years ago) buy a house in ok condition for under 20K.  The 2 with mortgages are multi-units (triplexs) and around $100K to purchase.\n\nBest of Luck
300662
it's not a bad deal for people who might have trouble qualifying for a conventional loan.  It's usually an owner who owns the house outright and wants to have that interest on the sale (like what the bank would normally get).  That owner will have a lien on the house the way a bank that did your mortgage would.
576753
Your credit score could affect your ability to get a loan at the best rates.  There are plenty of companies that prey on people with less than perfect credit and offer loans that are really bad deals.  \n\nYour realtor should be able to recommend a reputable mortgage broker who can help you find a reasonable loan and understand the terms of that loan.\n\nThe less money you have to borrow the more comfortable a bank is about loaning their money to you. Banks will feel most comfortable lending you 80% or less of the cost of the house.  That's why you don't have to pay for PMI if you put at least 20% down. (PMI is private mortgage insurance.  If you default, this insurance will pay the bank.  It WON'T get YOU off the hook - you'll still owe the bank).\n\nOne way to get around PMI if you don't have 20% to put down is to basically take out a second mortgage on the house to borrow what you can't cover out of your own pocket.  However, that second mortgage ain't cheap.\n\nOther ways to get into a house without much cash is to take out an interest only loan or an adjustable rate loan.  If you are going to be in the house for a while, those loans can be riskier than a traditional mortgage since the loans are basically drawn up to favor the lender.   \n\nGood luck!
890875
I think you mean fixed or adjustable.\nMany adjustable mortgages are fixed for a short period of time, like fixed rates, so they're safe. They're safe because your payment won't change suddenly.\nThe advantage to the adjustable rates is that they're usually a little lower, so if you have a couple of things that make qualifying for a loan difficult, or if you're only living at that place for a short period of time, you'll save money. The downside is that at a certain point they'll start adjusting to some sort of market index. they may go up or they might go down. Who knows.\nThe advantage of the fixed is that your payment will never change. If you are what is called a prime borrower, you'll get great rates anyway and it's not something you have to deal with in the future.
962100
I think that most mortgage companies will look at both scenarios & take both incomes into consideration. If both people want to be on the note of the loan they will look at both incomes.
245224
If you have the money, it is easy. But if not and you will ask for a loan, it will be hard and you may not be able to get the best terms of the loan. You will have little to no credit history, and that is always an impediment.
482935
There are plenty of companies that offer 100, 103 and 107% loan options.  Lending Tree.com would be a start.