Question 1

What happens when the interest-only period ends?

Accepted Answer

Your loan converts to principal-and-interest payments for the remaining term. Monthly costs jump significantly—plan to refinance or sell before that happens.

Question 2

Can I use projected Airbnb income to qualify?

Accepted Answer

Not for interest-only loans. Qualification relies on your assets, reserves, and credit score. Rental income doesn't factor into approval.

Question 3

Do interest-only loans make sense for a Big Bear primary residence?

Accepted Answer

Rarely. They're designed for investors and second-home buyers maximizing cash flow. Primary residents usually benefit more from conventional or FHA loans.

Question 4

What down payment do I need for a Big Bear vacation home?

Accepted Answer

Expect 25-30% down minimum. Lenders view resort properties as higher risk than primary residences in stable markets.

Question 5

Can I refinance to another interest-only loan later?

Accepted Answer

Yes, if you still qualify and market conditions allow. Many borrowers reset their interest-only period every 5-7 years as property values increase.

Interest-Only Loans for Big Bear Lake Second Homes and Investment Properties