Question 1

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

Accepted Answer

Most lenders want at least 680. Some non-QM programs go lower with stronger assets or larger down payments.

Question 2

What happens when the interest-only period ends?

Accepted Answer

Your payment jumps — you start paying principal plus interest on the remaining balance. Plan for that before you close.

Question 3

Can I use bank statements instead of tax returns to qualify?

Accepted Answer

Yes. Most non-QM lenders offering IO programs accept 12 or 24 months of bank statements for self-employed borrowers.

Question 4

Are interest-only loans good for buying rental property in Tulare County?

Accepted Answer

They can work. But compare against DSCR loans first — DSCR programs often offer better terms for investment properties.

Question 5

Do interest-only loans have prepayment penalties?

Accepted Answer

Some do. Non-QM lenders vary widely here. Read the loan terms carefully and ask your broker directly before signing.

Interest-Only Loans in Exeter, CA — Lower Payments, Smarter Cash Flow