Question 1

How long does the interest-only period last in Point Arena?

Accepted Answer

Typically 5-10 years depending on the lender. After that, payments increase to cover principal and interest over the remaining loan term.

Question 2

Can I use rental income to qualify for interest-only?

Accepted Answer

Yes, through DSCR programs that qualify based on property cash flow. The rental income must cover the interest payment plus reserves.

Question 3

What happens if Point Arena property values drop?

Accepted Answer

You could owe more than the home's worth since you're not paying principal. Refinancing becomes difficult without equity growth.

Question 4

Do interest-only loans work for primary residences in Point Arena?

Accepted Answer

They're available but rare for primary homes. Most lenders prefer these loans for investment properties or second homes in coastal areas.

Question 5

What credit score do I need for interest-only in Mendocino County?

Accepted Answer

Most lenders require 700 minimum, with 720+ getting better rates. Rural locations like Point Arena sometimes face stricter requirements.

Interest-Only Loans in Point Arena: Lower Payments for Coastal Investment Properties