Pay only interest for the first 5-10 years, reducing your monthly payment. Principal payments begin after the interest-only period ends.
5-10 yr
IO Period
20%+
Down
700
Min Credit
Written by Renzo Johnson, Licensed MLO · NMLS #PENDING · Last updated: February 2026
Key Features
- Interest-only payments for 5-10 years
- Lower monthly payment during IO period
- Full amortization begins after IO period (remaining term)
- Available on jumbo, non-QM, and some conventional programs
- 20%+ down payment typical
- Higher credit score requirements
Who Is This For?
- Investors maximizing cash flow on rental properties
- High-income professionals with variable bonus income
- Borrowers planning to sell before IO period ends
- Buyers who want maximum flexibility in early years
Florida-Specific Considerations
- Florida investors use IO to maximize DSCR ratios
- Popular for Miami and South Florida luxury/investment properties
- Short-term rental investors preserving cash flow
Ready to Get Started?
Get a personalized quote with no obligation. We’ll help you find the best loan for your situation.