Question 1

How long does the interest-only period last?

Accepted Answer

Most programs run 5 or 10 years. After that, the loan fully amortizes and your payment increases.

Question 2

Can I pay down principal during the IO period?

Accepted Answer

Yes. Most loans allow extra principal payments. You're just not required to make them.

Question 3

Do interest-only loans have higher rates?

Accepted Answer

Yes, typically. Non-QM pricing carries a premium over conventional. Rates vary by borrower profile and market conditions.

Question 4

Is an interest-only loan right for an investment property in Union City?

Accepted Answer

It can work, but DSCR loans are often a better fit. They underwrite on rental income, not personal income.

Question 5

What credit score do I need in Alameda County?

Accepted Answer

Most non-QM lenders want 700 or higher for interest-only products. Some go lower with larger down payments.

Question 6

Can self-employed borrowers qualify for interest-only loans?

Accepted Answer

Yes. Bank statement and asset qualifier options exist within the non-QM space. These are common programs for self-employed buyers.

Interest-Only Loans in Union City, CA