Question 1

How long is the interest-only period?

Accepted Answer

Typically 5 to 10 years. After that, the loan re-amortizes and your payment increases to cover principal and interest.

Question 2

Do I build equity during the interest-only period?

Accepted Answer

Not through payments. You only build equity if the property appreciates in value.

Question 3

Can I pay principal during the interest-only period?

Accepted Answer

Yes. You're not required to, but you can make principal payments any time. Most borrowers don't — that defeats the cash flow purpose.

Question 4

What credit score do I need in Ventura County?

Accepted Answer

Most lenders want 720 or higher for interest-only products. Some go lower with stronger assets and larger down payments.

Question 5

Are these loans good for investment properties in San Buenaventura?

Accepted Answer

They can be. Investors use them to reduce carrying costs. DSCR loans are often worth comparing side by side.

Question 6

What happens if I can't refinance when the IO period ends?

Accepted Answer

Your payment increases significantly. You need a clear exit plan — refinance, sell, or the ability to absorb the higher payment.

Interest-Only Loans in San Buenaventura, CA