Question 1

How long is the interest-only period?

Accepted Answer

Most IO loans offer a 5 or 10-year interest-only window. After that, the loan recasts and payments include principal.

Question 2

Do I build equity during the IO period?

Accepted Answer

Not through payments — only through property appreciation. In a market like Ross, that can still be substantial.

Question 3

What income types do lenders accept?

Accepted Answer

Non-QM lenders often accept bank statements, asset depletion, or 1099 income. W-2 income works too.

Question 4

Can I pay down principal during the IO period?

Accepted Answer

Most IO loans allow extra principal payments. Check your loan docs for prepayment terms before assuming.

Question 5

Is an interest-only loan risky in Ross?

Accepted Answer

The risk is payment shock after the IO period ends. A clear refinance or exit strategy eliminates most of that risk.

Question 6

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

Accepted Answer

Most non-QM lenders want 700 or above. Higher scores unlock better rates. Rates vary by borrower profile and market conditions.

Interest-Only Loans in Ross, CA — Lower Payments, Strategic Borrowing