Question 1

What happens when the interest-only period ends?

Accepted Answer

Payments jump to include principal, typically increasing 30-60%. Most borrowers refinance or sell before this happens. Plan your exit now, not later.

Question 2

Can I qualify using cryptocurrency assets?

Accepted Answer

Yes, as of 2026 certain non-QM lenders accept verified crypto holdings as reserves. They don't count as income, but they strengthen your asset profile significantly.

Question 3

Do interest-only loans work for primary residences in San Luis Obispo?

Accepted Answer

They can, but only if you have a clear reason—job relocation coming, bonus income expected, or planned refinance. Without a strategy, you're just delaying principal.

Question 4

How much lower are interest-only payments?

Accepted Answer

Typically 20-35% lower during the interest-only period. A $800K loan might drop from $5,200 to $3,600 monthly, depending on rate and term.

Question 5

What credit score do I need for interest-only in San Luis Obispo?

Accepted Answer

Minimum 680 with most lenders, though 700+ gets better rates. Strong assets or large down payments can compensate for scores in the 680-699 range.

Question 6

Should I choose a 5-year or 10-year interest-only period?

Accepted Answer

Depends on your timeline. Five years works for short holds or expected refinances. Ten years suits investors maximizing cash flow or borrowers anticipating gradual income growth.

Interest-Only Loans in San Luis Obispo: Lower Payments for High-Income Earners