Question 1

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

Accepted Answer

Most lenders want 700 or above. Some go lower with compensating factors like a large down payment.

Question 2

Do I build equity during the interest-only period?

Accepted Answer

No. You only build equity if the property appreciates. Principal balance stays flat until you start paying principal.

Question 3

How long does the interest-only period last?

Accepted Answer

Usually 5 to 10 years depending on the loan. After that, payments adjust to cover principal and interest.

Question 4

Can I use an interest-only loan for a Dixon rental property?

Accepted Answer

Yes. Investors use them for cash flow flexibility. A DSCR loan may also be worth comparing for rental-specific qualification.

Question 5

Are interest-only loans harder to get in Solano County?

Accepted Answer

They require a non-QM lender regardless of location. Smaller markets like Dixon don't change the program, but appraisal can get tricky.

Question 6

What happens when the interest-only period ends?

Accepted Answer

Your payment increases to cover principal plus interest. If rates also adjusted, the jump can be significant — plan ahead.

Interest-Only Loans in Dixon, CA — Lower Payments, Bigger Flexibility