An interest-only investor loan on a Connecticut rental can make the early numbers look better, especially on a DSCR file where the lender compares rent with the payment. Before you rely on it, find out how the lender calculates the ratio, when the payment changes and what you would do if a refinance is not possible when the time comes. A licensed loan officer can lay out the full payment schedule for you.
Call to talk with a licensed loan officer. Programs vary by borrower, property and investor.
Connecticut landlord-tenant law: Connecticut General Statutes Title 47a, Chapter 830. The Judicial Branch law library page collects Connecticut's landlord-tenant statutes (Title 47a) along with court forms and guides for evictions, repairs and security deposits. Leases you show a lender should follow it.
Where the numbers point in Connecticut
Counties with the most interest-only investor loans (2024):
| County | Interest-only investor loans (2024) |
|---|---|
| the Capitol Planning Region | 194 |
| the Western Connecticut Planning Region | 131 |
| the Naugatuck Valley Planning Region | 128 |
| the South Central Connecticut Planning Region | 123 |
| the Greater Bridgeport Planning Region | 84 |
| the Southeastern Connecticut Planning Region | 72 |
| the Lower Connecticut River Valley Planning Region | 25 |
| the Northwest Hills Planning Region | 25 |
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Prefer to talk first? Call (888) 865-8230. 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.
Interest-Only Investor Loans by city in Connecticut
- Ansonia
- Branford Center
- Bridgeport
- Bristol
- Cheshire Village
- Conning Towers Nautilus Park
- Cos Cob
- Danbury
- Derby
- Glastonbury Center
- Hartford
- Jewett City
- Kensington
- Meriden
- Middletown
- Milford
- Milford city
- Naugatuck
- New Britain
- New Haven
- New London
- Norwalk
- Norwich
- Oakville
- Old Greenwich
- Pawcatuck
- Riverside
- Rockville
- Shelton
- Sherwood Manor
- Simsbury Center
- Southwood Acres
- Stafford Springs
- Stamford
- Storrs
- Terryville
- Thompsonville
- Torrington
- Wallingford Center
- Waterbury
- West Haven
- Willimantic
- Winsted
Common questions
What happens to my payment when the interest-only period ends?
The payment increases to include principal, and because principal is repaid over a shorter remaining term, the increase can be significant. If the rate is adjustable, it can also change on its own schedule. Ask for a written payment schedule that shows the payment during and after the interest-only period, and compare both against the rent you collect today.
Who tends to choose interest-only financing for a rental?
It often appeals to investors doing value-add work who want lower payments during improvements, investors in high-cost markets where rent is thin compared with price, and portfolio owners who prefer to keep cash available. It suits people with a clear plan for the higher payment later. It is a weaker fit for anyone relying on rent growth to cover that later payment.
Can I get an interest-only loan on a home I will live in?
This page covers investment property only. Interest-only loans on a home you live in are consumer loans with their own rules and protections, and they are covered among other options on a sister site. If you are buying a rental, an interest-only investor loan may be worth comparing with a fully amortizing loan. Never describe a rental as owner-occupied, since misrepresenting occupancy is mortgage fraud.
Other investor loans in Connecticut
DSCR loansDSCR requirementsDSCR down paymentAirbnb / STR loansHard money lendersHard money for a primary homeFix and flip loansInvestor bridge loansPortfolio lendersBlanket mortgagesInvestment property loansHELOC on a rentalInvestor cash-out refiSecond home loansPrivate money lenders
Related guides
- DSCR Loan Pros and Cons
- What Is a DSCR Loan? Meaning, the Ratio, and How It Works
- How to Compare DSCR Lenders and Loan Offers
Interest-Only Investor Loans overview · Connecticut investor loan overview
- 2024 HMDA data