Loading
Marin County prices are brutal. A standard principal-and-interest payment here can stretch even high earners thin.
Interest-only loans cut your monthly payment during the initial period. That matters in a market like San Rafael.
700+ typical
Min Credit Score
5–10 years
IO Period Length
20–30%
Down Payment
Non-QM
Loan Classification
12+ months
Reserves Required
Interest-Only Loans in San Rafael
These are non-QM loans. Lenders set their own rules — but expect a 700+ credit score minimum at most shops.
Debt-to-income limits are stricter than conventional. You'll need strong reserves. Think 12+ months of payments in the bank.
Retail banks rarely offer interest-only anymore. Wholesale lenders are where these programs live.
We work with 200+ wholesale lenders. Several specialize in non-QM products built for high-cost California markets.
Most borrowers using interest-only in San Rafael are self-employed or have irregular income. The lower payment gives them breathing room.
The risk is real: when the IO period ends, payments jump. Make sure you have a plan before year five or ten hits.
An ARM also offers a lower initial rate — but you're still paying principal. Interest-only goes further on payment reduction.
DSCR loans serve investors focused on rental income. Interest-only can layer onto a DSCR structure for even better cash flow.
San Rafael sits in one of California's most expensive counties. Loan amounts here routinely exceed conforming limits.
Jumbo interest-only loans are a natural fit for this market. Lenders familiar with Marin pricing underwrite these more confidently.
Usually 5 to 10 years. After that, payments reset to include principal over the remaining loan term.
No — not from payments. Equity only grows if the property appreciates during that time.
Most programs allow it. You're just not required to. Extra principal payments reduce your balance voluntarily.
Yes. Jumbo IO is common in high-cost markets like Marin. Lenders offer them regularly at large loan amounts.
Most non-QM lenders want 700 or higher. Some go lower with larger down payments and stronger reserves.
It can work well. Lower payments improve cash flow. Pair it with a DSCR structure for the best investor outcome.