Question 1

Who is an interest-only loan best suited for in Mount Shasta?

Accepted Answer

Investors and second-home buyers who want lower near-term payments. It's not the right call for primary residence buyers planning to stay long-term.

Question 2

Do I build equity during the interest-only period?

Accepted Answer

No principal is paid during the IO period. You only gain equity through property appreciation or a larger down payment at closing.

Question 3

What happens when the interest-only period ends?

Accepted Answer

Payments reset to fully amortizing — covering both principal and interest. The monthly payment increases, sometimes significantly, so plan ahead.

Question 4

Can I use rental income to qualify for an interest-only loan?

Accepted Answer

It depends on the lender. Some non-QM lenders factor rental income in. Others use personal income only. We can show you both options.

Question 5

Are interest-only loans available for rural properties near Mount Shasta?

Accepted Answer

Yes, but rural properties require solid appraisals and sufficient equity. Some lenders restrict LTV on non-warrantable or remote properties.

Question 6

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

Accepted Answer

Most lenders require 700 or higher. Some go down to 680 with a larger down payment. Rates vary by borrower profile and market conditions.

Interest-Only Loans in Mount Shasta, CA