Question 1

Can I qualify using unvested stock options?

Accepted Answer

Unvested options don't count as liquid reserves. Once vested, they work for reserves and sometimes income if you have a multi-year vesting history through equity statements.

Question 2

What happens when the interest-only period ends?

Accepted Answer

Your payment increases 40-60% as you begin paying principal. Most borrowers refinance into a new IO loan or sell before conversion hits.

Question 3

Do interest-only loans work for Los Gatos investment properties?

Accepted Answer

Yes, but DSCR loans often price better for rentals since they qualify on property income. IO makes more sense for primary residences or second homes.

Question 4

How much can I save monthly with an IO loan?

Accepted Answer

On a $2M loan, expect to save $3,500-4,500 monthly during the IO period versus a fully amortizing loan. Savings scale with loan size.

Question 5

Can I make principal payments during the interest-only period?

Accepted Answer

Most IO loans allow voluntary principal payments without penalty. You control when and how much to pay down, giving you maximum cash flow flexibility.

Interest-Only Loans in Los Gatos: Lower Payments for High-Income Tech Professionals