Question 1

How long does the interest-only period last?

Accepted Answer

Most programs run 5 or 10 years interest-only. After that, the loan recasts and you pay principal plus interest.

Question 2

Do I build any equity during the IO period?

Accepted Answer

Only through appreciation, not paydown. Your balance stays the same until principal payments begin.

Question 3

Can I use this loan to buy farmland in Yolo County?

Accepted Answer

Some non-QM lenders will finance rural properties with acreage. Lender appetite varies, so we shop it across multiple sources.

Question 4

What happens if I want to sell before the IO period ends?

Accepted Answer

You can sell or refinance. Just know your equity position — if values haven't risen, you may have less than you expect.

Question 5

Is an interest-only loan right for seasonal income earners?

Accepted Answer

It can be a smart fit. Lower required payments help during slow months. Strong reserves still matter to lenders.

Question 6

How is this different from a DSCR loan for investors?

Accepted Answer

DSCR loans qualify based on rental income. Interest-only is a payment structure. They can overlap, but serve different needs.

Interest-Only Loans in Winters, CA — Lower Payments, More Flexibility