Question 1

How long does the interest-only period last?

Accepted Answer

Typically 5 to 10 years, depending on the lender and loan structure. After that, payments reset to fully amortizing — meaning principal and interest.

Question 2

Do I build any equity during the interest-only phase?

Accepted Answer

No — you're not paying down principal. Equity only grows if the property value increases during that period.

Question 3

What credit score do I need in San Francisco?

Accepted Answer

Most lenders want 700 or above for interest-only loans. Some may go lower with a larger down payment or significant reserves.

Question 4

Can I refinance before the interest-only period ends?

Accepted Answer

Yes, and many borrowers plan to. Just make sure your exit strategy doesn't depend entirely on appreciation or a future rate environment.

Question 5

Is this loan available for investment properties in SF?

Accepted Answer

Yes. Investors use interest-only loans to manage cash flow during a hold period. Underwriting on investment properties is typically stricter.

Question 6

Why use a broker for an interest-only loan in SF?

Accepted Answer

These loans aren't offered by most retail banks. A broker with wholesale access can find lenders who actually do them — and compare pricing across multiple options.

Interest-Only Loans in San Francisco