Question 1

What happens when the interest-only period ends in Cloverdale?

Accepted Answer

Your payment adjusts to include principal, typically increasing 30-40%. Most borrowers refinance before this happens or have planned income growth to cover the higher payment.

Question 2

Can I get interest-only on a Cloverdale investment property?

Accepted Answer

Yes, rental properties qualify with 25-30% down. Lenders will review rent potential but won't require tenants in place at closing like DSCR loans do.

Question 3

Do interest-only loans work for self-employed borrowers in Sonoma County?

Accepted Answer

They're designed for it. Non-QM underwriting uses bank statements instead of tax returns, which helps if your write-offs reduce reported income.

Question 4

What credit score do I need for interest-only financing?

Accepted Answer

Most lenders require 680 minimum. Better credit gets better rates. Scores below 680 need more down payment or won't qualify at all.

Question 5

Are interest-only loans available for Cloverdale properties under $500K?

Accepted Answer

Yes, but some lenders set $400K minimums. The non-QM space focuses on borrowers who don't fit conventional boxes, not just high loan amounts.

Interest-Only Loans in Cloverdale: Lower Payments for Sonoma Wine Country Properties