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Interest-Only Mortgages in Virginia

What Virginia borrowers should know, with county data and local pages.

Some Virginia buyers and owners expect a large future sum, such as proceeds from selling a business or another property, and want to keep cash available until it arrives. An interest-only mortgage can fit that plan, but it carries real risks: your balance does not shrink unless you pay extra, the payment rises later and your equity depends on the home's value. Eligibility varies by borrower, property and investor, and any loan is subject to credit approval.

Questions about Interest-Only mortgages in Virginia?

Call to talk with a licensed loan officer. Programs vary by borrower, property and investor.

Mortgage lenders, brokers and loan originators serving Virginia are licensed by the Virginia State Corporation Commission, Bureau of Financial Institutions. Non-QM loans are made by the same licensed lenders and brokers, so you can confirm any company's or loan officer's license on NMLS Consumer Access before you apply.

Where the numbers point in Virginia

Counties with the most first liens with an interest-only feature (2024):

CountyFirst liens with an interest-only feature (2024)
Fairfax County156
Franklin County46
Arlington County43
the City of Virginia Beach40
Loudoun County36
Hanover County31
Albemarle County29
Rockingham County29
Washington County25
Augusta County24
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Local pages in Virginia

Common questions

Do I build equity with an interest-only loan?

Only through a rise in the home's value or extra principal payments you choose to make. Required payments during the interest-only period do not reduce what you owe. If values fall, you could owe close to or more than the home is worth, which makes selling or refinancing harder. Plan for that possibility rather than counting on appreciation.

What is an interest-only mortgage?

An interest-only mortgage is a loan where the required payments cover only interest for an initial period. Your balance does not go down during that time unless you pay extra. After the interest-only period, the loan amortizes and payments include principal and interest, which raises the payment. The feature is offered on non-QM loans because Qualified Mortgage rules exclude interest-only payments.

Who should consider an interest-only mortgage?

It tends to suit borrowers with variable income, such as business owners or commission earners, and those expecting a large future sum, such as proceeds from a business or property sale. It can also suit people with significant assets who want to keep cash flexible. It is generally a poor fit if you need the interest-only payment just to afford the home.

Other non-QM options in Virginia

Bank statement loansNon-QM lendersSelf-employed1099 loansP&L loansAsset depletionNo-doc / stated incomeNew self-employedITIN loansForeign nationalNon-warrantable condoBank statement HELOC

Related guides

Interest-Only Mortgages overview · Virginia non-QM overview

  • 2024 HMDA data
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