Question 1

Who uses interest-only loans in Crescent City?

Accepted Answer

Mostly investors and self-employed buyers who want lower early payments. Primary home buyers rarely benefit unless they have a specific short-term plan.

Question 2

Do I build equity during the interest-only period?

Accepted Answer

No. You only build equity if the property appreciates. Your loan balance stays the same until you start paying principal.

Question 3

What happens when the IO period ends?

Accepted Answer

Your payment recasts to cover principal and interest over the remaining term. That payment can jump significantly — plan for it.

Question 4

Can I get an interest-only loan with a 640 credit score?

Accepted Answer

It's tough. Most non-QM lenders want 680 or higher for IO products. A lower score usually means a higher rate or a flat denial.

Question 5

Are interest-only loans available for short-term rentals in Del Norte County?

Accepted Answer

Yes, some non-QM lenders will approve IO on investment properties with short-term rental income. Expect stricter reserve requirements.

Interest-Only Loans in Crescent City, CA