Question 1

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

Accepted Answer

Most lenders want 680 or higher. Some go up to 720 minimum depending on the loan size and down payment.

Question 2

Do I build equity during the interest-only period?

Accepted Answer

No. You pay zero principal during that phase. Equity only grows if the property appreciates.

Question 3

Can I use cross-border business income to qualify?

Accepted Answer

Some non-QM lenders accept foreign income with proper documentation. It depends heavily on the lender's guidelines.

Question 4

How long does the interest-only period last?

Accepted Answer

Typically 5 to 10 years. After that, payments reset to fully amortizing — principal plus interest.

Question 5

Is an interest-only loan a good fit for a Calexico investment property?

Accepted Answer

It can be, if your exit strategy is clear. Short-term holds or fix-and-flip scenarios are where this product tends to make sense.

Question 6

How is this different from a conventional loan?

Accepted Answer

Conventional loans are QM products with strict guidelines. Interest-only is non-QM — more flexible terms, but tighter lender-specific requirements.

Interest-Only Loans in Calexico, CA