Question 1

How long is the interest-only period?

Accepted Answer

Typically 5 to 10 years. After that, your payment resets to include principal, and it increases significantly.

Question 2

Can I use this loan for a rural property in Siskiyou County?

Accepted Answer

Yes, but lender options narrow with acreage and rural features. We work with Non-QM lenders who specifically handle rural Northern California.

Question 3

Does an interest-only loan build equity?

Accepted Answer

Not during the IO period. You only build equity through property appreciation or when principal payments begin.

Question 4

What credit score do I need in Fort Jones?

Accepted Answer

Most Non-QM lenders want 680 or higher for interest-only. Some go lower with stronger reserves and a larger down payment.

Question 5

Is an interest-only loan risky?

Accepted Answer

It carries real risk if you have no plan for when principal payments start. Used strategically, it's a legitimate cash flow tool.

Interest-Only Loans in Fort Jones, CA