Question 1

What happens when the interest-only period ends?

Accepted Answer

Payments reset to fully amortizing — meaning you pay principal plus interest over the remaining term. Monthly payments jump noticeably, so plan for that shift.

Question 2

Can I use an IO loan to buy in Tiburon as a primary residence?

Accepted Answer

Yes. IO loans work for primary homes. Lenders will still underwrite your income and assets carefully at this price point.

Question 3

Will I build equity during the IO period?

Accepted Answer

Not from payments — only from market appreciation. That's the core trade-off with an interest-only structure.

Question 4

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

Accepted Answer

Most lenders want 700 or above. Some programs allow lower, but pricing gets worse fast. Rates vary by borrower profile and market conditions.

Question 5

How large can an IO loan be in Tiburon?

Accepted Answer

IO loans are typically structured as jumbo non-QM products. Loan sizes in Tiburon commonly exceed $2M depending on the lender and borrower profile.

Question 6

Is an IO loan a good fit if I plan to sell in 5–7 years?

Accepted Answer

It can be. The lower payment during the IO window aligns with a shorter hold strategy. Just confirm the IO period matches your planned timeline.

Interest-Only Loans in Tiburon, CA