Question 1

How long is the interest-only period?

Accepted Answer

Typically 5 to 10 years. After that, the loan recasts and you pay principal plus interest on the remaining balance.

Question 2

Do I build equity during the interest-only phase?

Accepted Answer

Not through payments. Equity only grows if the property appreciates in value during that period.

Question 3

What credit score do I need in Marin County?

Accepted Answer

Most lenders want 700 or higher for interest-only. Stronger credit also gets you better rates. Rates vary by borrower profile and market conditions.

Question 4

Can I pay down principal early during the IO period?

Accepted Answer

Many programs allow voluntary principal payments. Check for prepayment penalties before you sign — some non-QM loans carry them.

Question 5

Is this a good fit for Novato investment properties?

Accepted Answer

It can be. Lower payments improve monthly cash flow. Pair it with a clear hold strategy and solid reserves.

Question 6

Why work with a broker for interest-only financing?

Accepted Answer

Non-QM guidelines vary widely by lender. A broker shopping 200+ wholesale sources finds terms retail banks simply won't offer.

Interest-Only Loans in Novato, Marin County