Question 1

What happens when the interest-only period ends?

Accepted Answer

Payments jump. You start repaying principal on a shorter schedule, which raises your monthly cost significantly.

Question 2

Can I get an interest-only loan on a rural Amador County property?

Accepted Answer

Yes, but lender options narrow. Non-QM lenders evaluate rural collateral carefully, and some won't lend in low-population counties.

Question 3

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

Accepted Answer

Most non-QM lenders want 700 or above. Some go lower with stronger reserves or a larger down payment.

Question 4

Is an interest-only loan good for investment property?

Accepted Answer

It can be. Lower payments improve short-term cash flow. But you build zero equity during the IO period.

Question 5

How long is the interest-only period?

Accepted Answer

Usually 5 to 10 years. After that, the loan resets to fully amortizing payments for the remaining term.

Interest-Only Loans in Amador City, CA