Question 1

How often does the rate adjust on a portfolio ARM in Crescent City?

Accepted Answer

Most adjust annually after a 3, 5, or 7-year fixed period. The index plus margin determines the new rate, subject to periodic and lifetime caps.

Question 2

Can I qualify with rental income from a vacation property?

Accepted Answer

Yes. Portfolio lenders count documented rental income even without two years of history. Bank statements showing deposits work for many underwriters.

Question 3

What down payment do I need for a coastal property in Crescent City?

Accepted Answer

Expect 25% down for properties in flood zones or with unique features. Some lenders go to 20% with strong credit and reserves.

Question 4

Do portfolio ARMs have prepayment penalties?

Accepted Answer

Most include a 3-year declining prepayment penalty. Year one might be 3%, year two 2%, year three 1%. Read your specific loan terms.

Question 5

How do lenders view self-employment income in Del Norte County?

Accepted Answer

Portfolio ARM lenders use 12-24 months of bank statements to calculate income. They don't require tax returns showing two-year averages like conventional loans.

Portfolio ARM Loans in Crescent City: Flexible Financing for Unique Properties