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South San Francisco's tech corridor continues to attract high-income professionals. The 220 Park office tower in nearby Burlingame just hit 100% occupancy with tenants like Confluent and Upstart, signaling sustained job growth.
Interest Only loans appeal to borrowers with strong income and equity. You pay interest for a set period—typically 5 to 10 years—then transition to principal and interest. This structure keeps early payments lean while you build wealth elsewhere.
700
Minimum FICO
20%
Minimum Down Payment
6–12 months
Required Reserves
5–10 years
Interest-Only Period
$1,249,125
2026 Conforming Limit
Interest-Only Loans in South San Francisco
Interest Only loans typically require 700+ FICO and 20% down minimum. Lenders want to see strong liquid reserves—often 6 to 12 months of housing payments in the bank. Your debt-to-income ratio must stay below 43%, sometimes tighter.
San Mateo County's median household income of $156,000 supports purchases well into the $1.2M range. At that income level, a $1M loan with interest-only payments becomes manageable.
Local decision guide
Use this guide to connect interest-only loans eligibility, lender expectations, and local market factors before comparing payment options in South San Francisco.
South San Francisco's tech corridor continues to attract high-income professionals. The 220 Park office tower in nearby Burlingame just hit 100% occupancy with tenants like Confluent and Upstart, signaling sustained job growth.
Interest Only loans appeal to borrowers with strong income and equity. You pay interest for a set period—typically 5 to 10 years—then transition to principal and interest. This structure keeps early payments lean while you build wealth elsewhere.
Interest Only loans typically require 700+ FICO and 20% down minimum. Lenders want to see strong liquid reserves—often 6 to 12 months of housing payments in the bank. Your debt-to-income ratio must stay below 43%, sometimes tighter.
Interest Only loans are niche products. Most retail banks don't offer them; portfolio lenders and specialty mortgage companies dominate this space. Brokers can access a handful of solid programs through correspondent relationships.
Underwriting takes longer than conventional because the loan structure requires deeper analysis. Expect 45 to 60 days to close. Lenders scrutinize your exit strategy—how you'll handle the principal phase when it arrives.
Interest Only loans make sense for South San Francisco buyers with high income and a clear wealth-building plan. If you're earning $250K+ and expect a bonus or equity payout in five years, the lower payment buys breathing room.
The real risk is the payment shock. When the interest-only period ends, your payment jumps 30% to 50%. You must have a plan—refinance, sell, or absorb the higher payment. Without that plan, conventional or FHA becomes the safer choice.
Conventional 30-year fixed loans carry higher payments from day one but no payment shock. You build principal immediately and never face a rate reset. Interest Only trades that certainty for lower early payments—a real advantage if cash flow matters now.
Jumbo loans (above $1,249,125) require 20% down and stronger reserves, just like Interest Only. The difference: jumbo is a fixed 30-year amortization with a higher rate.
Reposado, a fine-dining Mexican restaurant, opened in downtown San Mateo in February 2026. That kind of restaurant-district growth signals neighborhood stability and appeal to high-income professionals.
San Mateo City Council is weighing a regional transit tax to fund Caltrain and BART expansion. If passed, it could improve commute reliability for tech workers buying here.
Interest Only lets you pay only interest for 5–10 years, then principal kicks in. Standard 30-year fixed builds principal from month one. IO payments run 30–50% lower early on, but jump significantly when the interest phase ends.
Yes. Most lenders require 20% down minimum on Interest Only loans. Some may accept 15% with strong reserves and income, but 20% is the standard floor. Conventional loans can go as low as 5% down with PMI.
Your payment jumps to include principal repayment. A $1M loan might jump from $4,500/month to $6,500/month. You must refinance, sell, or absorb the higher payment. Planning this transition is critical before you sign.
Yes, if your household income exceeds $200K and you have 20% down plus 6–12 months reserves. San Mateo County's median income of $156,000 supports this price range, but lenders want documented income well above median for IO approval.
Expect 45–60 days. These loans require deeper underwriting than conventional because lenders need to verify your exit strategy. Faster closings are rare; plan for the longer timeline.