Question 1

Do I build equity on an interest-only loan?

Accepted Answer

Not during the IO period. You only build equity if the property appreciates. Principal paydown starts after the IO period ends.

Question 2

How long is a typical interest-only period?

Accepted Answer

Usually 5 to 10 years. After that, your payment recalculates to cover principal and interest over the remaining term.

Question 3

Can self-employed borrowers qualify in Willits?

Accepted Answer

Yes. Bank statement programs are common with interest-only non-QM loans. Most lenders want 12 to 24 months of statements.

Question 4

Will lenders finance rural Mendocino County properties?

Accepted Answer

Some will, some won't. It depends on the lender's rural lending guidelines and whether comparable sales support the appraised value.

Question 5

What credit score do I need for interest-only?

Accepted Answer

Most non-QM lenders set the floor at 700. Some go lower with more reserves or a larger down payment.

Question 6

Is interest-only a good fit for a rental property in Willits?

Accepted Answer

It can improve monthly cash flow. But a DSCR loan may qualify more easily — ask us to compare both before you decide.

Interest-Only Loans in Willits, CA — Lower Payments, Real Strategy