Question 1

What happens when the interest-only period ends?

Accepted Answer

Your payment increases to include principal, often jumping 40-60% higher. Most borrowers refinance before this happens or have income growth planned to cover the increase.

Question 2

Can I get interest-only with less than 20% down?

Accepted Answer

Rarely. Most Non-QM lenders require 20-30% down for interest-only terms. Lower down payments eliminate this option at nearly all lenders.

Question 3

How do interest-only loans work for investment properties?

Accepted Answer

They maximize cash flow by minimizing payments, but lenders require higher reserves and down payments. Consider DSCR loans instead if rental income alone needs to qualify you.

Question 4

Are interest-only loans adjustable or fixed rate?

Accepted Answer

Most are adjustable after the initial period, though some lenders offer fixed-rate interest-only. Fixed versions carry higher rates but eliminate rate risk during the IO period.

Question 5

What credit score do I need for interest-only in Rolling Hills Estates?

Accepted Answer

Expect 680 minimum, though most approved borrowers have 700+. Higher scores unlock better rates and longer interest-only periods from our lender network.

Interest-Only Loans for Rolling Hills Estates Properties