Question 1

Who typically uses interest-only loans in Marysville?

Accepted Answer

Investors and self-employed borrowers with irregular income are the most common users. It's rarely the right fit for first-time buyers.

Question 2

What happens when the interest-only period ends?

Accepted Answer

The loan recasts to fully amortizing — principal plus interest on the remaining balance. Payments increase, sometimes sharply.

Question 3

Do I need perfect credit to qualify?

Accepted Answer

Not perfect, but strong. Most lenders want 700 or above. Below that, your options get thin fast.

Question 4

Can I use an interest-only loan for a rental property?

Accepted Answer

Yes. Many Yuba County investors pair IO with a DSCR structure to lower monthly payments and improve early cash flow.

Question 5

Are interest-only loans riskier than conventional loans?

Accepted Answer

They carry more risk if you don't have an exit plan. No equity builds during the IO period, so strategy matters from day one.

Question 6

How long is the interest-only period?

Accepted Answer

Typically 5 to 10 years, depending on the lender and program. After that, the full principal payment kicks in.

Interest-Only Loans in Marysville, CA