Question 1

Who uses interest-only loans in Angels Camp?

Accepted Answer

Investors, second-home buyers, and high earners with variable income. They want lower payments now and plan to refinance or sell later.

Question 2

What credit score do I need?

Accepted Answer

Most lenders want 700 or higher for interest-only programs. Stronger credit means better rates. Rates vary by borrower profile and market conditions.

Question 3

How long is the interest-only period?

Accepted Answer

Typically 5 to 10 years. After that, payments reset to cover principal and interest — and they go up significantly.

Question 4

Can I use an interest-only loan for a rental property?

Accepted Answer

Yes, but DSCR loans may be a better fit for rental income qualification. We can compare both options for your specific property.

Question 5

Do I need a big down payment?

Accepted Answer

Yes — plan on 20-30% down. Lenders want skin in the game on non-QM products like this.

Question 6

Are interest-only loans risky?

Accepted Answer

They carry more risk than fully amortizing loans. The risk is manageable if you have a clear plan for the end of the IO period.

Interest-Only Loans in Angels Camp, CA