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Berkeley is a high-cost market. Properties here routinely push jumbo territory, making loan flexibility critical.
HousingWire flagged a 10.4% drop in mortgage applications as the 30-year fixed hit 6.57%. ARM demand shifted — and portfolio ARMs are where smart borrowers are looking.
Non-QM ARM
Loan Type
5, 7, or 10 Years
Fixed Period Options
12+ Months Typical
Reserves Required
620–700+ Varies
Credit Score Range
Bank Stmts, P&L, W-2
Income Types
Portfolio ARMs in Berkeley
Portfolio ARMs are non-QM loans. Lenders hold them in-house, so they set their own rules.
Credit requirements vary widely by lender. Expect stricter reserve requirements — often 12+ months of payments in the bank.
Local decision guide
Use this guide to connect portfolio arms eligibility, lender expectations, and local market factors before comparing payment options in Berkeley.
Berkeley is a high-cost market. Properties here routinely push jumbo territory, making loan flexibility critical.
HousingWire flagged a 10.4% drop in mortgage applications as the 30-year fixed hit 6.57%. ARM demand shifted — and portfolio ARMs are where smart borrowers are looking.
Portfolio ARMs are non-QM loans. Lenders hold them in-house, so they set their own rules.
Most big banks won't touch these. Portfolio ARMs live at credit unions, community banks, and specialty lenders.
We work with 200+ wholesale lenders. That reach matters here — portfolio ARM programs differ dramatically from one lender to the next.
The rate adjusts — that's the trade-off. You get a lower starting rate, but you need a real exit plan.
Most Berkeley borrowers using these loans plan to sell or refinance before the first adjustment. If that's your strategy, the savings are real. Rates vary by borrower profile and market conditions.
A conventional ARM gets sold to Fannie or Freddie. A portfolio ARM stays with the lender — which means more flexible underwriting.
DSCR loans work well for pure rentals. Bank statement loans fit self-employed income. Portfolio ARMs bridge both worlds when income is complex and the hold period is under 7 years.
Berkeley's rental market is strong. Investors here use portfolio ARMs to acquire properties quickly, then refinance once rents stabilize.
Alameda County's high values make the initial rate savings significant. On a $1.2M loan, even 0.75% off the start rate is real money.
The lender keeps it instead of selling it. That means they write their own rules on income, credit, and terms.
Yes — especially for short hold periods. Investors use the lower start rate to improve early cash flow.
Common options are 5, 7, or 10 years. The right choice depends on how long you plan to hold the property.
Yes. Portfolio lenders often accept bank statements or P&Ls instead of tax returns. That's a big advantage.
It depends on the lender. We've seen minimums from 620 to 700. Reserves and LTV matter just as much.