Question 1

What credit score do I need for an IO loan in Vista?

Accepted Answer

Most non-QM lenders want 700 or above. Stronger credit gets better rates. Rates vary by borrower profile and market conditions.

Question 2

How long is the interest-only period?

Accepted Answer

Typically 5 to 10 years. After that, the loan recasts to fully amortizing payments — expect a noticeable increase.

Question 3

Can I use bank statements to qualify?

Accepted Answer

Yes. Self-employed borrowers in Vista often qualify using 12 or 24 months of bank statements instead of tax returns.

Question 4

Do interest-only loans work for investment properties?

Accepted Answer

They can. But if the property produces rental income, a DSCR loan may qualify you on property cash flow instead of personal income.

Question 5

Will I build equity during the IO period?

Accepted Answer

No principal paydown occurs during IO. Equity only grows if the property appreciates — which is never guaranteed.

Question 6

Are IO loans available through retail banks in Vista?

Accepted Answer

Rarely. These products live in the wholesale non-QM channel. A broker with non-QM access is your best path to these programs.

Interest-Only Loans in Vista, CA