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Crescent City's affordable housing shortage is drawing attention — the Battery Point Apartments project is restarting after storm damage, signaling renewed investment in local housing.
Adjustable-rate mortgages work best when you have a clear exit strategy. If you're planning to stay five to seven years, the lower starting rate can mean real savings.
0.375–0.625% lower
ARM vs. Fixed Spread
3, 5, 7, or 10 years
Typical Fixed Period
680
Minimum FICO
$832,750
2026 Conforming Limit
$66,780
County Median Income
Portfolio ARMs in Crescent City
Portfolio Arms require solid credit — typically 680 FICO or higher — and a debt-to-income ratio under 43%. Down payments start at 5% for conforming loans up to $832,750 in 2026.
Lenders scrutinize ARM borrowers more closely than fixed-rate buyers. You'll need two years of employment history, verified income, and reserves equal to two months of payments. Self-employed applicants should have two years of tax returns and a CPA letter.
Local decision guide
Use this guide to connect portfolio arms eligibility, lender expectations, and local market factors before comparing payment options in Crescent City.
Crescent City's affordable housing shortage is drawing attention — the Battery Point Apartments project is restarting after storm damage, signaling renewed investment in local housing.
Adjustable-rate mortgages work best when you have a clear exit strategy. If you're planning to stay five to seven years, the lower starting rate can mean real savings.
Portfolio Arms require solid credit — typically 680 FICO or higher — and a debt-to-income ratio under 43%. Down payments start at 5% for conforming loans up to $832,750 in 2026.
Portfolio Arms have narrowed in California over the past decade. Most lenders offer them only to borrowers with strong credit and substantial equity. Broker channels often have more ARM options than retail banks, which have largely exited the product.
Closing timelines for ARMs run 30 to 45 days. Underwriting is stricter because the lender carries rate risk after the initial fixed period. Expect detailed income verification and property appraisals. Rates lock for 45 to 60 days once you're clear to close.
Portfolio Arms make sense in Crescent City for buyers who are certain they'll refinance or move within five to seven years. The rate savings in year one and two can be meaningful — often 0.375% to 0.625% below a 30-year fixed.
The county's median household income of $66,780 limits most buyers to the $350,000 to $450,000 range. At that price point, a lower ARM rate can save $50 to $100 per month early on. But if rates spike at adjustment time, that advantage vanishes fast.
A 30-year fixed-rate mortgage offers payment certainty — your rate and payment never change. Portfolio Arms start lower but adjust after the initial period, which means your payment could rise significantly.
For Crescent City buyers staying long-term, fixed-rate mortgages are simpler. You know exactly what you'll pay for 30 years. ARMs suit investors and buyers with clear exit timelines.
Del Norte Coast Redwoods State Park is a major draw for outdoor buyers. Seasonal camping, coastal hiking, and wildlife viewing attract families and retirees.
The new Native American studies curriculum rolling out in Del Norte County schools reflects growing investment in local education. Teachers are receiving training on Yurok culture and tribal sovereignty.
A fixed rate stays the same for 30 years. An ARM starts lower but adjusts after the initial period — typically 3, 5, 7, or 10 years. If rates rise, your payment rises. Fixed is predictable; ARM is cheaper upfront but riskier long-term.
That depends on the specific ARM terms — caps vary by lender. Most ARMs cap annual increases at 2% and lifetime increases at 5% or 6%. Call for your loan's exact caps. If rates spike, your payment could jump $200–$400 per month or more.
No. ARMs work best for buyers with a clear exit — refinance or sale within 5–7 years. If you're staying 10+ years, a fixed-rate mortgage eliminates the risk of payment shock. The early ARM savings won't offset a big rate jump at adjustment time.
Most lenders require 680 FICO or higher. Some require 700+. ARMs carry more underwriting scrutiny than fixed-rate loans because the lender bears rate risk. Strong credit helps you qualify and get the best available rate.
Yes. Refinancing is the main exit strategy for ARM borrowers. If rates drop or you want to lock in a fixed rate before adjustment, you can refinance. Plan on closing costs of 2–3% of the loan amount. Most ARM borrowers refinance in year 4–6.