In most cases, you're eligible to apply for an interest-only mortgage based on your projected monthly payment when your interest-only period ends. For example, if your interest rate is fixed for seven years with a 30-year loan term, you qualify based on the adjusted rate after seven years and one day. The requirements for an FHA loan are much more flexible than those for a conventional loan. You can qualify with fair credit, a 3.5% down payment, and a higher debt-to-income ratio.
You can even use an FHA loan to finance a multi-family rental property or fixed home. However, keep in mind that you'll have to pay mortgage insurance for an FHA loan, which can increase your total cost. Because an interest-only mortgage only requires interest payments during the initial phase, your monthly payment will be lower than that of a comparable conventional mortgage.