Can you get an interest-only DSCR loan?
Yes — an interest-only option is widely available across non-QM DSCR programs, and a 10-year interest-only period is the typical structure across the market. During that window the payment covers interest only, lowering the monthly obligation; on many programs — not all — the qualifying ratio is computed on that interest-only payment, which can lift a borderline DSCR.
The tradeoff is real: no principal paydown during the interest-only years, then a payment step-up when amortization begins. Choice Home Mortgage shops many DSCR lenders and will tell you honestly whether interest-only strengthens your specific deal or just delays its math — call (949) 522-7310.
The longer answer.
As of 2026, the common structures across wholesale DSCR lending pair a 10-year interest-only period with a longer amortization: the widely marketed "40-year DSCR loan" is really ten interest-only years followed by 30 years of amortization, and interest-only periods appear on 30-year structures too. It's a standard structuring lever, not a niche product.
How qualification works matters as much as the payment relief. Many programs compute the coverage ratio on the interest-only payment — interest, taxes, insurance, and any association dues, with no principal — which shrinks the payment side of the ratio. But that is not universal: some programs qualify on an amortizing payment instead, so the same property can produce a different qualifying ratio at different lenders. That variance is exactly what a broker shops.
Weigh the mechanics honestly. During the interest-only period the balance doesn't shrink — equity builds only through appreciation and your original down payment — and when amortization starts, the payment steps up. Interest-only DSCR programs also typically carry somewhat tighter eligibility than fully-amortizing versions. For a deal with a clear cash-flow plan, the flexibility can be worth it; for a thin deal, it can simply postpone the problem.
A number on a webpage is never a quote for your file. The figures on this page reflect what wholesale lending programs typically offer — and lender guidelines, overlays, and matrices genuinely change all the time. A range that is typical this quarter can move next quarter, and the lender that fits a given scenario best may sit outside every figure here. That churn is not a flaw in the page; it is how wholesale lending works, and it is exactly why a broker who watches the matrices beats any static webpage — including this one. For today's guidelines across the lender panel as they apply to your situation, call owner Esther Buede at (949) 522-7310 — the check costs nothing, and it is the only number that counts.
Related reading: DSCR loans hub · DSCR down payment requirements · DSCR calculator · DSCR loan requirements in California · Start your application
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