Question 1

What is an interest-only loan exactly?

Accepted Answer

You pay only the interest for a set period — often 5 or 10 years. After that, payments increase to cover principal and interest.

Question 2

Can I get an interest-only loan on a primary home in Oakdale?

Accepted Answer

Yes, but lenders are more cautious on primary residences. Investor and second-home use is far more common with this product.

Question 3

What credit score do I need?

Accepted Answer

Most non-QM lenders want 700 or above for interest-only. Some go lower — but expect a higher rate in exchange.

Question 4

How long is the interest-only period?

Accepted Answer

Typically 5 or 10 years depending on the lender and loan structure. After that, the loan fully amortizes.

Question 5

Is an interest-only loan risky?

Accepted Answer

It can be. You build no equity during the IO period. If property values drop, you may owe more than the home is worth.

Question 6

How does a broker help with interest-only loans in Oakdale?

Accepted Answer

Most banks don't offer these. A broker shops across non-QM wholesale lenders to find terms that actually fit your deal.

Interest-Only Loans in Oakdale, CA