Question 1

How long is the interest-only period?

Accepted Answer

Typically 5 to 10 years. After that, you repay principal and interest over the remaining loan term.

Question 2

Do I build any equity during the IO period?

Accepted Answer

No equity through paydown — only through appreciation. In Fremont's market, that can still be significant.

Question 3

Can I use an interest-only loan for an investment property?

Accepted Answer

Yes. Many Fremont investors use IO loans to manage carry costs. Lender overlays still apply.

Question 4

What credit score do I need for an IO loan in Fremont?

Accepted Answer

Most lenders want 700 or higher. Some non-QM programs allow lower scores with stronger compensating factors.

Question 5

Is an interest-only loan harder to qualify for?

Accepted Answer

Yes. Lenders underwrite your ability to handle the fully amortized payment — not just the IO payment.

Interest-Only Loans in Fremont, CA