Question 1

How long does the interest-only period last?

Accepted Answer

Typically 5 to 10 years. After that, payments reset to cover principal and interest — and they jump significantly.

Question 2

Do I build equity during the interest-only period?

Accepted Answer

Only if the property appreciates. You are not paying down principal, so your loan balance stays flat.

Question 3

Can self-employed borrowers qualify in Simi Valley?

Accepted Answer

Yes — this is one of the few loan types built for non-traditional income. Bank statements or P&L statements usually work.

Question 4

What credit score do I need for interest-only?

Accepted Answer

Most lenders want 700 or higher. Below that, your options narrow fast and rates get punishing.

Question 5

Is this loan available for investment properties in Simi Valley?

Accepted Answer

Yes. Investors use interest-only to keep carrying costs low while a property appreciates or gets repositioned.

Question 6

What happens if I can't refinance when the interest-only period ends?

Accepted Answer

Your payment increases — sometimes sharply. Have a clear exit plan before you take this loan.

Interest-Only Loans in Simi Valley, CA