Question 1

Who actually benefits from an interest-only loan in Hemet?

Accepted Answer

Investors and self-employed borrowers with variable income benefit most. W-2 earners with steady income rarely need this structure.

Question 2

What happens when the interest-only period ends?

Accepted Answer

Your payment increases — sometimes significantly. Principal repayment compresses into the remaining loan term.

Question 3

Can I use an interest-only loan on a Hemet rental property?

Accepted Answer

Yes. Many investors use IO loans to maximize monthly cash flow on rentals. You'll still qualify on personal income, not just rent.

Question 4

What credit score do I need for an interest-only loan?

Accepted Answer

Most non-QM lenders want 700 or above. Some go lower with larger down payments. Rates vary by borrower profile and market conditions.

Question 5

Are interest-only loans risky?

Accepted Answer

They carry real risk if you don't have an exit plan. No equity builds during the IO period unless property values rise.

Interest-Only Loans in Hemet, CA