Question 1

How long does the interest-only period last?

Accepted Answer

Typically 5-10 years depending on the loan structure. After that, payments adjust to cover principal and interest on the remaining balance.

Question 2

Do I build equity during the interest-only period?

Accepted Answer

No — unless your property appreciates. You're not paying down principal, so your loan balance stays flat during that initial period.

Question 3

Can self-employed borrowers in Woodlake qualify?

Accepted Answer

Yes. Non-QM lenders often use bank statements instead of tax returns. That makes interest-only loans a realistic option for business owners.

Question 4

What credit score do I need to qualify?

Accepted Answer

Most lenders want 680 or higher for interest-only. Some non-QM programs go lower but price the rate accordingly. Rates vary by borrower profile and market conditions.

Question 5

Is this a good fit for an investment property in Tulare County?

Accepted Answer

It can be. Lower payments improve monthly cash flow. But you need an exit plan — this product isn't designed for long-term set-and-forget investors.

Interest-Only Loans in Woodlake, CA