Question 1

Do I build equity during the interest-only period?

Accepted Answer

No. You pay zero principal during the IO period. Equity only grows if your property value increases.

Question 2

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

Accepted Answer

Most lenders require 700 or higher. Some portfolio lenders flex to 680 with stronger reserves.

Question 3

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

Accepted Answer

Yes, but a DSCR loan may qualify you more easily. It uses rental income instead of personal income to approve the loan.

Question 4

How long does the interest-only period last?

Accepted Answer

Typically 5 to 10 years. After that, your payment resets to cover both principal and interest for the remaining term.

Question 5

Are interest-only loans harder to get than conventional loans?

Accepted Answer

Yes. They're non-QM products with stricter guidelines. Lender access is more limited and down payment requirements are higher.

Interest-Only Loans in Dinuba, CA