Question 1

Who should use an interest-only loan in Healdsburg?

Accepted Answer

Buyers with high assets, variable income, or short hold strategies. It fits investors and second-home buyers more than long-term primary residents.

Question 2

Do I build any equity during the IO period?

Accepted Answer

No. Every payment goes to interest only. Equity grows only if the property appreciates.

Question 3

What credit score do I need for an IO loan?

Accepted Answer

Most lenders require 700 or higher. Some go to 680 with stronger reserves or a larger down payment.

Question 4

Can I use vacation rental income to qualify?

Accepted Answer

It depends on the lender. Short-term rental income is treated inconsistently — some lenders exclude it entirely. Ask us before assuming it counts.

Question 5

What happens when the IO period ends?

Accepted Answer

Your payment recalculates to cover principal and interest over the remaining term. Payments rise — sometimes significantly. Plan for this in advance.

Question 6

Is an IO loan harder to get than a standard jumbo?

Accepted Answer

Yes. Non-QM guidelines are stricter on reserves and documentation. Lender options are also narrower than the conventional or jumbo market.

Interest-Only Loans in Healdsburg, CA