Question 1

How long does the interest-only period last?

Accepted Answer

Most interest-only loans have a 5 to 10 year interest-only period. After that, payments jump as principal repayment begins.

Question 2

Can I use an interest-only loan on a primary home in Susanville?

Accepted Answer

Technically yes, but few lenders approve them for primary residences today. This product fits investors and high-asset borrowers better.

Question 3

What credit score do I need?

Accepted Answer

Most lenders want at least a 680. Some portfolio lenders go lower, but rates climb fast below that threshold.

Question 4

Do interest-only loans require a big down payment?

Accepted Answer

Expect 20–30% down. These are non-QM products, and lenders offset risk with stronger equity at closing.

Question 5

Will my payment increase after the interest-only period?

Accepted Answer

Yes — significantly. Once amortization starts, you're paying principal plus interest over a shortened remaining term.

Question 6

Is an interest-only loan available for a rental property in Lassen County?

Accepted Answer

Yes. Rental property is actually the strongest use case. A DSCR loan may also work — compare both before choosing.

Interest-Only Loans in Susanville, CA