Question 1

What is an interest-only loan?

Accepted Answer

You pay only the interest for an initial period — no principal. Your payment is lower, but your balance doesn't drop during that time.

Question 2

Who qualifies for IO loans in San Jacinto?

Accepted Answer

Typically investors, self-employed borrowers, or high-income buyers. You'll need strong credit and usually 20% down.

Question 3

What happens when the IO period ends?

Accepted Answer

Your payment increases to cover principal and interest. That jump can be significant — model it before you commit.

Question 4

Can I use an IO loan for a rental property?

Accepted Answer

Yes. Investors use IO loans to lower monthly costs and improve short-term cash flow on rental properties.

Question 5

Is an IO loan a good deal in Riverside County?

Accepted Answer

It depends on your exit strategy. It works well short-term, but it's not a buy-and-hold-forever product.

Question 6

How do I find lenders for interest-only loans?

Accepted Answer

Most retail banks don't offer them. You need access to wholesale lenders — which is where a broker earns their keep.

Interest-Only Loans in San Jacinto, CA