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.
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):
| County | First liens with an interest-only feature (2024) |
|---|---|
| Fairfax County | 156 |
| Franklin County | 46 |
| Arlington County | 43 |
| the City of Virginia Beach | 40 |
| Loudoun County | 36 |
| Hanover County | 31 |
| Albemarle County | 29 |
| Rockingham County | 29 |
| Washington County | 25 |
| Augusta County | 24 |
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Prefer to talk first? Call (888) 508-8976. Applying is not a loan approval or commitment to lend; programs vary by borrower, property and investor. ClearPoint Mortgage Advisors, NMLS #173855. Properties in FL, NY, NJ, PA, CT and VA only.
Local pages in Virginia
- Non-QM lenders in Virginia Beach
- Non-QM lenders in Richmond
- Non-QM lenders in Chesapeake
- Non-QM lenders in Norfolk
- Non-QM lenders in Arlington
- Non-QM lenders in Roanoke
- Non-QM lenders in Newport News
- Non-QM lenders in Fredericksburg
- Non-QM lenders in Alexandria
- Non-QM lenders in Hampton
- Non-QM lenders in Lynchburg
- Non-QM lenders in Charlottesville
- Non-QM lenders in Portsmouth
- Non-QM lenders in Suffolk
- Non-QM lenders in Blacksburg
- Non-QM lenders in Williamsburg
- Non-QM lenders in Winchester
- Non-QM lenders in Centreville
- Non-QM lenders in Dale City
- Non-QM lenders in Harrisonburg
- Non-QM lenders in Reston
- Non-QM lenders in Staunton
- Non-QM lenders in Leesburg
- Non-QM lenders in Ashburn
- Non-QM lenders in Tuckahoe
- Non-QM lenders in McLean
- Non-QM lenders in Danville
- Non-QM lenders in Lake Ridge
- Non-QM lenders in Annandale
- Non-QM lenders in Burke
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
- QM vs. Non-QM Loans: What the Difference Means for You
- How to Compare Non-QM Loan Offers: Loan Estimates, Features and Fit
- What Is a Non-QM Loan?
Interest-Only Mortgages overview · Virginia non-QM overview
- 2024 HMDA data