Income Requirements For Interest Only Mortgage

25 february 2017 by aaron strutt.

Income requirements for interest only mortgage. To get an interest only mortgage for the self employed you have to show your accounts and the amount you can borrow is based on your net profit usually times the same multiplier as for employees but as our guide on self employed mortgage applications with 1 years accounts shows there are lots of options even if you only have one years accounts. Santander for intermediaries has removed its minimum income requirement for borrowers looking for interest only mortgages. Previously there was a 50 000 requirement for single clients or 70 000 for joint applicants. Split repayment methods are also now a possibility with some lenders giving slightly better scope in this area.

You can figure out if you qualify for the program using this link to freddie mac. In general you can t make more than 100 of the average median income for the area. Santander removes minimum income interest only mortgage requirement. This is the case unless you live in a low income census tract.

During the first 10 years the buyer pays just interest. While a regular mortgage may allow you to put down a deposit as small as 5 interest only mortgages typically require you to have a much more substantial deposit. The majority of interest only mortgages today are attached to 30 year mortgages. 50 60 loan to value ltv is a common requirement which means your deposit equity will need to cover 40 50 of the value of the property before you proceed.