Question 1

What is an interest-only loan?

Accepted Answer

You pay only interest for an initial period — often 5 to 10 years. After that, payments rise to cover both principal and interest.

Question 2

Can I get an interest-only loan on rural land in Modoc County?

Accepted Answer

Yes, but lender options are limited. Non-QM wholesale lenders are your best path. Property type and acreage affect eligibility.

Question 3

What credit score do I need?

Accepted Answer

Most non-QM lenders require 680 or higher for interest-only. Some go lower with larger down payments or strong reserves.

Question 4

How long does the interest-only period last?

Accepted Answer

Typically 5 to 10 years depending on the loan structure. After that, the loan fully amortizes over the remaining term.

Question 5

Is this a good fit for investment property in Alturas?

Accepted Answer

It can be, if your cash flow goals require lower early payments. Compare it against DSCR loan terms before committing.

Question 6

What happens to my payment when the IO period ends?

Accepted Answer

Your payment increases — sometimes significantly. Plan your refinance or payoff strategy before that date arrives.

Interest-Only Loans in Alturas, CA