Optimize Cash Flow with Interest-Only Non-QM Loans

Interest-Only Non-QM Loans are a type of mortgage where borrowers only pay the interest on the loan for a set period, usually 5-10 years. This significantly reduces the initial monthly payment, providing flexibility and cash flow advantages.

During the interest-only period, your payments only cover the interest accrued on the loan. The principal balance remains unchanged.

After the interest-only period ends, the loan typically converts to a fully amortizing loan, where you pay both principal and interest, increasing your monthly payments.

These loans are ideal for:

• Real Estate Investors: Maximize cash flow from rental properties or fix-and-flip projects.
• High-Income Earners: Reduce initial payments for financial flexibility.
• Business Owners: Free up cash for investments or business expansion.
• Self-Employed Individuals: Qualify using alternative income documentation.

Interest-Only Non-QM Loans offer several benefits:

• Lower Initial Payments: Significantly reduce your monthly mortgage payment during the interest-only period.
• Increased Cash Flow: Free up funds for investments, debt repayment, or other financial goals.
• Potential Tax Benefits: Consult a tax advisor as interest payments may be tax-deductible.
• Greater Buying Power: Qualify for a larger loan amount due to the reduced initial payments.

While Interest-Only Non-QM Loans offer advantages, there are some risks to consider:

• Increased Total Interest Paid: You'll pay more interest over the life of the loan due to the deferred principal payments.
• Potential Negative Amortization: If your property value declines, you could owe more than the original loan amount.
• Payment Shock: Your payments will increase significantly once the interest-only period ends.

Ameritrust Mortgage offers a variety of interest-only options:

• Interest-Only Bank Statement Loans: For self-employed borrowers.
• Interest-Only DSCR Loans: For real estate investors.
• Interest-Only Fixed-Rate Loans: Stable interest rates for the entire loan term.
• Interest-Only Adjustable-Rate Mortgages (ARMs): Lower initial rates with potential for adjustment after the interest-only period.

Requirements vary depending on the lender and loan program, but typically include:

• Good Credit History: A strong credit score demonstrates your ability to manage debt.
• Sufficient Income or Assets: Proof of income or assets to cover the loan payments.
• Property Appraisal: A professional appraisal to determine the property's value.

Contact Ameritrust Mortgage to speak with a loan officer who specializes in non-QM loans. They will help you assess your eligibility, discuss your financial goals, and guide you through the application process.