Question 1

How long does the interest-only period last?

Accepted Answer

Most programs run 5 to 10 years interest-only. After that, you pay principal and interest on the remaining balance.

Question 2

Can I use this loan for a Tracy rental property?

Accepted Answer

Yes. Investors often use interest-only to reduce monthly costs. Lenders will still underwrite the deal carefully.

Question 3

Do I build equity during the interest-only period?

Accepted Answer

No principal payments means no equity from payments. Equity only grows if the property value increases.

Question 4

What credit score do I need in San Joaquin County?

Accepted Answer

Most non-QM lenders want 700 or above for interest-only. Some go lower with a larger down payment.

Question 5

What happens when the interest-only period ends?

Accepted Answer

Payments reset to cover principal plus interest. That increase can be significant — plan for it from day one.

Question 6

Is an interest-only loan risky?

Accepted Answer

It carries real risk if your income drops or the property loses value. It is a tool for the right borrower, not a general shortcut.

Interest-Only Loans in Tracy, CA