Question 1

What happens when the interest-only period ends?

Accepted Answer

Your payment jumps to include principal, often increasing 30-40%. Most borrowers refinance before this happens, especially if rates dropped or home appreciated.

Question 2

Can I use stock options to qualify for an interest-only loan?

Accepted Answer

Vested RSUs count as income with most non-QM lenders. Unvested stock might count as reserves but not income. We structure these deals constantly in San Bruno.

Question 3

Do interest-only loans work for investment properties in San Bruno?

Accepted Answer

Yes, especially paired with DSCR qualification. You qualify on rental income and keep payments low with IO structure. Strong rental demand here makes this common.

Question 4

What credit score do I need for an IO loan?

Accepted Answer

Most lenders want 700+, but we've placed 680 borrowers with strong income. Higher scores unlock better rates and longer IO periods.

Question 5

Are IO loans more expensive than regular mortgages?

Accepted Answer

Yes, rates run 0.5-2% higher than conventional loans. But initial payments are 25-35% lower. It trades rate for cash flow flexibility.

Interest-Only Loans in San Bruno: Lower Payments for High-Earners and Investors