Most lenders want at least 15-20% equity, otherwise the I/O component could be available but cost or payment prohibitive. 

We stall development, cleanup current property, rent at market, hold our I/O 2.9% rate for the next 5 years while still locked in and pick back up development when rates fall in the next few years.

Update 2023* We did a Heloc on our primary residence(duplex) with Penfed at 80% ltv around 8% 3o year am with 10 I/O and 20 yr payback.

This is more often the case for long-term mortgage products. 6-36mo I/O Bridge Lenders generally speaking, care less about sourced or seasoned down money, but always worth discussing with you lender before you proceed with any form of Gap Funding.

Some DSCR lenders can offer pretty nice terms up to 8/10 units, rates may be a bit higher but will come with fixed 30-year terms, including options to do IO for the first 10 years. 

Any buildings on site or 100% IOS?

$80K mortgage you can elect an I/O interest only 7.75% $516.67 a month I/O plus T&I ($140) $656.67.

Interest only means you don't pay any principle at all during the I/O period.

@Tiffany Davidson, Interest Only mortgages (or a proportion thereof) only really make sense in two instances.When re-positioning a property an IO period at the beginning of a mortgage will maximize cash flow.

Your downpayment would be 25-30%, but if the property is being delivered vacant and needs some renovation, then a bridge these are 70-75% LTC with a 12-24 month I/O term.