Question 1

Who should consider a portfolio ARM in Lafayette?

Accepted Answer

Business owners, investors, or high earners with non-traditional income who need flexible underwriting. Best if you plan to refinance or sell before the first rate adjustment.

Question 2

How do portfolio ARMs differ from regular jumbo ARMs?

Accepted Answer

Portfolio ARMs use custom underwriting and flexible income documentation. Regular jumbo ARMs follow stricter agency-style guidelines but typically offer better rates.

Question 3

What happens when the fixed period ends?

Accepted Answer

Your rate adjusts based on an index plus a margin, subject to caps. Most borrowers refinance or sell before the first adjustment to avoid rate increases.

Question 4

Can I use a portfolio ARM for investment properties in Lafayette?

Accepted Answer

Yes, many portfolio lenders finance investment properties. Compare against DSCR loans, which may offer better long-term rate stability for rentals.

Question 5

How much down payment do portfolio ARM lenders require?

Accepted Answer

Expect 15-25% down for most Lafayette properties. Larger down payments and strong reserves improve both approval odds and pricing.

Portfolio ARMs in Lafayette: Flexible Financing for Complex Deals