Question 1

What credit score do I need for a portfolio ARM in Kerman?

Accepted Answer

Most lenders want 680 minimum, though some go to 660 with larger down payments. Higher scores unlock better rates and lower margins on the adjustable period.

Question 2

Can I use portfolio ARMs for investment properties?

Accepted Answer

Yes. Many lenders offer portfolio ARMs for 1-4 unit rentals with 25-30% down. DSCR loans often beat them on rate, but ARMs work if your income story is complex.

Question 3

How do adjustments work after the fixed period?

Accepted Answer

Your rate adjusts annually based on an index plus the lender's margin. Caps limit how much it can jump — typically 2% per year and 5% lifetime. Review your note for exact terms.

Question 4

Do portfolio ARMs require tax returns?

Accepted Answer

Usually not. Most portfolio lenders use 12-24 months of bank statements instead. A few might ask for returns to verify assets but won't qualify you on reported income.

Question 5

What down payment is typical?

Accepted Answer

Expect 20-25% down for owner-occupied, 25-30% for investment properties. Some lenders go to 15% with strong credit and reserves, but that's rare in Kerman's market.

Portfolio ARM Financing in Kerman — Flexibility for Complex Income