Question 1

How long does the interest-only period last?

Accepted Answer

Most IO loans offer a 5-10 year interest-only period. After that, the loan fully amortizes over the remaining term.

Question 2

Do I build equity during the IO period?

Accepted Answer

No. You only build equity through appreciation. Principal balance stays the same until amortization begins.

Question 3

Can I get an interest-only loan if I'm self-employed?

Accepted Answer

Yes — non-QM IO loans are often structured for self-employed borrowers. Bank statement income documentation is common.

Question 4

What credit score do I need for an IO loan in Marin?

Accepted Answer

Most lenders want 700 or higher. Stronger credit means better rates and terms on non-QM products.

Question 5

Is an interest-only loan risky for a Fairfax primary home?

Accepted Answer

It depends on your plan. Without equity buildup, you're exposed if values drop. Strong reserves reduce that risk.

Interest-Only Loans in Fairfax, Marin County