Question 1

How long is the interest-only period?

Accepted Answer

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

Question 2

Can I use an IO loan for a rental property in Corcoran?

Accepted Answer

Yes. Many investors use IO loans on rentals to maximize cash flow. Lender reserves and credit requirements still apply.

Question 3

Does an interest-only loan build equity?

Accepted Answer

Not through payments — only through appreciation. You're not reducing the principal balance during the IO period.

Question 4

What credit score do I need?

Accepted Answer

Most lenders want 680 or higher for IO programs. Stronger credit gets better rates. Rates vary by borrower profile and market conditions.

Question 5

Can self-employed borrowers qualify in Kings County?

Accepted Answer

Yes. Many IO lenders use bank statements instead of tax returns. That helps business owners with write-downs qualify.

Interest-Only Loans in Corcoran, CA