Question 1

How long does the interest-only period last?

Accepted Answer

Most IO loans offer a 5 or 10-year interest-only period. After that, payments reset to include principal — and they jump significantly.

Question 2

Will I build any equity during the IO period?

Accepted Answer

Not through payments alone. You only build equity if the property appreciates. That's a real risk worth understanding before you commit.

Question 3

Can I get an IO loan in San Anselmo with self-employed income?

Accepted Answer

Yes — IO loans often work well for self-employed borrowers. Lenders typically want 24 months of tax returns or 12-24 months of bank statements.

Question 4

What credit score do I need for an interest-only loan?

Accepted Answer

Most IO lenders in this price range want 700 or higher. Some go lower, but rate pricing gets punishing below that threshold.

Question 5

Are interest-only loans riskier than conventional loans?

Accepted Answer

Yes, structurally. Your balance doesn't shrink during the IO period. If values drop, you could owe more than the home is worth.

Question 6

What loan amounts are available for IO loans in Marin County?

Accepted Answer

IO loans typically start in jumbo territory and go well into the millions. Lender appetite varies — that's where broker access makes a real difference.

Interest-Only Loans in San Anselmo, CA