Question 1

How long does the interest-only period last?

Accepted Answer

Most programs offer 5, 7, or 10 years interest-only before converting to fully amortizing payments. Choose based on how long you plan to keep the property or when you expect refinancing.

Question 2

Can I use RSUs or stock options to qualify?

Accepted Answer

Yes, with documentation. Most non-QM lenders count vested RSUs and verified stock compensation. Some now accept cryptocurrency holdings as reserves, reflecting Sunnyvale's tech wealth reality.

Question 3

What happens when the interest-only period ends?

Accepted Answer

Your payment increases to cover principal and interest over the remaining loan term. A $1.5M loan could jump from $6,250 to $9,000+ monthly depending on remaining term and rate.

Question 4

Do interest-only loans work for investment properties in Sunnyvale?

Accepted Answer

They can, but DSCR loans often work better for pure rentals. Interest-only makes more sense for primary residences or properties you plan to sell before the IO period ends.

Question 5

What down payment do I need in Sunnyvale?

Accepted Answer

Expect 20-30% down minimum. On a $2M property, that's $400K-600K upfront. Higher down payments unlock better rates and sometimes extend the interest-only period available.

Question 6

Are interest-only loans riskier than traditional mortgages?

Accepted Answer

They require discipline since you're not building equity through payments. Risk is manageable if you have a clear exit strategy before the IO period ends or expect significant income growth.

Interest-Only Loans in Sunnyvale: Lower Payments for Tech Professionals