Question 1

What makes a portfolio ARM different from a regular ARM?

Accepted Answer

The lender keeps the loan instead of selling it. That means they set their own terms — more flexibility for borrowers who don't fit agency molds.

Question 2

Can I use a portfolio ARM to buy an investment property in Union City?

Accepted Answer

Yes. Portfolio lenders commonly approve investment properties. Rental income treatment and reserve requirements vary by lender.

Question 3

How does the rate adjust after the fixed period?

Accepted Answer

It follows a published index plus a margin. Your cap structure limits how much it can move at each adjustment and over the loan's life.

Question 4

Is a portfolio ARM considered a non-QM loan?

Accepted Answer

Often yes. Portfolio lenders use their own underwriting standards, which may not meet federal Qualified Mortgage guidelines.

Question 5

How large can a portfolio ARM loan be in Alameda County?

Accepted Answer

Portfolio products aren't bound by conforming limits. Loan size depends on the lender's appetite and your borrower profile.

Question 6

What documents do I need for a portfolio ARM?

Accepted Answer

It depends on the lender. Some require full income docs. Others accept 12-24 months of bank statements or asset depletion calculations.

Portfolio ARMs in Union City: Flexible Lending on Your Terms