Question 1

Who is an interest-only loan actually right for?

Accepted Answer

Investors, self-employed borrowers, and commission earners who need short-term payment flexibility. W-2 buyers with steady income usually get better terms elsewhere.

Question 2

What happens when the interest-only period ends?

Accepted Answer

Your payment recalculates to cover principal and interest over the remaining term. That jump can be significant — plan for it before closing.

Question 3

How long does the interest-only period last?

Accepted Answer

Typically 5 to 10 years depending on the lender and loan structure. After that, full amortization kicks in.

Question 4

Can I get an interest-only loan with bank statements?

Accepted Answer

Yes. Most IO lenders accept 12-24 months of bank statements. It is a common doc option for self-employed borrowers in Patterson.

Question 5

Is an interest-only loan available for a Patterson rental property?

Accepted Answer

Yes, and that is often the strongest use case. Some lenders combine IO with DSCR underwriting for investment properties.

Question 6

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

Accepted Answer

Most lenders want at least a 680. Some programs allow lower scores with stronger reserves or a larger down payment.

Interest-Only Loans in Patterson, CA