Question 1

What is an interest-only loan?

Accepted Answer

You pay only interest for a set period — usually 5 to 10 years. Principal payments kick in after that period ends.

Question 2

Can I get an interest-only loan in Porterville with self-employment income?

Accepted Answer

Yes. Non-QM lenders can use bank statements instead of tax returns. This is one of the best fits for self-employed borrowers.

Question 3

What happens when the interest-only period ends?

Accepted Answer

Your payment increases because you start paying principal. Most borrowers plan to refinance or sell before that happens.

Question 4

Are interest-only rates higher than conventional rates?

Accepted Answer

Yes, typically. Non-QM loans carry more lender risk, so rates run higher. Rates vary by borrower profile and market conditions.

Question 5

Do interest-only loans work for rental properties in Porterville?

Accepted Answer

They can, but DSCR loans often work better for rentals. DSCR qualifies on the property's income, not yours.

Question 6

How much do I need to put down in Tulare County?

Accepted Answer

Most non-QM lenders require 20% down minimum. Some go higher depending on your credit profile and loan size.

Interest-Only Loans in Porterville, CA