Question 1

Can I get an interest-only loan with W-2 income in San Leandro?

Accepted Answer

Yes, but lenders still require strong credit and reserves. W-2 borrowers qualify — the non-QM label doesn't exclude you.

Question 2

What happens when the interest-only period ends?

Accepted Answer

Payments reset to include principal. Your monthly payment will increase, sometimes significantly. Plan ahead.

Question 3

Are interest-only loans allowed for investment properties?

Accepted Answer

Yes. Many investors in Alameda County use them to manage cash flow during a hold or rehab period.

Question 4

What credit score do I need for an interest-only loan?

Accepted Answer

Most lenders want 700 or above. Some portfolio lenders go lower with compensating factors like large reserves.

Question 5

How do interest-only loans differ from DSCR loans?

Accepted Answer

DSCR loans qualify based on rental income, not your personal income. Interest-only is a payment structure, not an income type.

Question 6

Do interest-only loans carry higher rates?

Accepted Answer

Generally yes. Non-QM products price at a premium over conventional loans. Rates vary by borrower profile and market conditions.

Interest-Only Loans in San Leandro, CA