Question 1

What income documentation do portfolio ARM lenders accept?

Accepted Answer

Most accept 12-24 months of bank statements showing consistent deposits. Some also use asset depletion, rental income schedules, or P&L statements without full tax returns.

Question 2

How much higher are portfolio ARM rates compared to conventional?

Accepted Answer

Expect 0.5-1.5% higher than agency ARM rates. You're paying for flexible underwriting and the lender holding the loan instead of selling it.

Question 3

Can I refinance a portfolio ARM into a conventional loan later?

Accepted Answer

Yes, if your income documentation improves or you build enough equity. Many borrowers use portfolio ARMs as a bridge to conventional financing.

Question 4

Do portfolio ARM lenders accept recent credit events?

Accepted Answer

Many will work with borrowers 12-24 months past bankruptcy, foreclosure, or short sale. Your current reserves and down payment matter more than past events.

Question 5

What down payment do I need for a Brentwood investment property?

Accepted Answer

Most portfolio lenders require 25-30% down for non-owner-occupied properties. Owner-occupied purchases can start at 20% down with strong credit and reserves.

Portfolio ARMs in Brentwood: Flexible Financing Beyond Agency Guidelines