Question 1

How long is the interest-only period?

Accepted Answer

Typically 5 to 10 years. After that, the loan recasts and you pay principal plus interest on the remaining balance.

Question 2

Does my loan balance go down during the IO period?

Accepted Answer

No. You pay interest only, so the principal stays flat. You build no equity unless the property appreciates.

Question 3

Can I use RSU income to qualify?

Accepted Answer

Yes, many non-QM lenders accept RSU and bonus income. Documentation requirements vary by lender.

Question 4

Are interest-only loans allowed for investment properties?

Accepted Answer

Yes. Many investors in Mountain View use IO loans to maximize cash flow during the hold period.

Question 5

What credit score do I need for an interest-only loan?

Accepted Answer

Most non-QM lenders want 700 or higher. Some go to 680 with compensating factors like large reserves.

Question 6

Why use a broker for an interest-only loan in Mountain View?

Accepted Answer

These loans aren't at retail banks. A broker with non-QM wholesale access finds better pricing and more flexible guidelines.

Interest-Only Loans in Mountain View, CA