Question 1

What credit score do I need for a Portfolio ARM in Orinda?

Accepted Answer

Most lenders start at 680, but some go to 660 with larger down payments. Higher scores unlock better rates and lower margins on the ARM.

Question 2

How do Portfolio ARMs differ from conventional ARMs?

Accepted Answer

Portfolio ARMs stay with the lender instead of being sold to Fannie or Freddie. This allows flexible underwriting but often comes with higher margins.

Question 3

Can I qualify using investment income or stock portfolios?

Accepted Answer

Yes, that's the main advantage. Portfolio lenders evaluate total net worth and asset liquidity, not just employment income.

Question 4

What happens when the rate adjusts on a Portfolio ARM?

Accepted Answer

Your new rate equals the index plus margin, subject to annual and lifetime caps. Most adjust annually after an initial fixed period of 3-10 years.

Question 5

Are Portfolio ARMs good for Orinda's jumbo loan market?

Accepted Answer

Yes, they're common for loans above $1.5M. The lower initial rate helps with cash flow on expensive properties while maintaining flexibility.

Portfolio ARMs in Orinda: Flexible Financing for Complex Borrowers