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Portfolio ARMs in Mendota
Mendota's agricultural workforce creates income patterns most traditional lenders can't handle. Portfolio ARMs work because the lender keeps your loan instead of selling it to Fannie Mae.
These loans help farm workers, contractors, and seasonal earners who make good money but don't fit standard W-2 boxes. The lender sets their own rules since they're taking the risk directly.
Most portfolio ARM lenders want 20% down and 680+ credit. Income documentation varies wildly—some accept 12 months of bank statements, others review crop yields or seasonal contracts.
You'll pay 1-2% more than conforming rates initially. The adjustable rate means your payment can change after the fixed period ends, usually in 3, 5, or 7 years.
Only about 15 of our 200+ lenders offer true portfolio ARMs. Most regional banks and credit unions near Fresno have stopped keeping loans in-house since 2022.
The lenders still doing this want to see why your income works long-term. They'll ask about crop insurance, employer stability, or rental history if you're buying investment property.
I place 70% of Mendota portfolio ARMs with three specific lenders who understand Central Valley ag income. They know what harvest schedules look like and don't panic over seasonal bank account swings.
The biggest mistake borrowers make is applying for a 5/1 ARM without a plan for year six. If you can't refinance or afford a higher payment when rates adjust, this loan becomes expensive fast.
Bank statement loans offer fixed rates but require 24 months of deposits. Portfolio ARMs accept 12 months and start with lower payments, but the rate adjusts.
DSCR loans work better for pure investment properties in Mendota. If you're buying a home to live in with non-traditional income, portfolio ARMs give you more underwriting flexibility.
Mendota's small inventory means you're often competing with cash buyers on sub-$300k properties. Portfolio ARMs can close in 21 days since the lender makes all decisions internally.
Appraisals move slower here than Fresno proper. Budget 3-4 weeks for an appraiser to visit and comp properties in a town with limited recent sales data.
Your rate changes based on an index plus a margin set at closing. Most have 2% annual caps and 5-6% lifetime caps to limit payment shock.
Yes, if you show consistent seasonal earnings over 12-24 months. Portfolio lenders review total annual income, not just current pay stubs.
They earn higher interest margins and gain flexibility to approve borrowers Fannie Mae would reject. It's profitable for smaller loan amounts.
Most do, but expect 25-30% down for non-owner occupied. The lender wants equity cushion since they're holding the risk.
Typically 2% per year and 5-6% over the loan life. A 6% start rate could hit 11-12% maximum, though that's rare.
Mortgage financing for independent contractors and freelancers who earn 1099 income instead of traditional W-2 wages.
Mortgage programs that allow borrowers to qualify based on liquid assets rather than traditional employment income.
Non-QM loans that use 12 to 24 months of bank statements to verify income for self-employed borrowers.
Short-term financing that bridges the gap between buying a new property and selling an existing one.
Debt Service Coverage Ratio loans that qualify investors based on a rental property's income rather than personal income.
Mortgage programs designed for non-US citizens and non-permanent residents who want to purchase property in the United States.
Asset-based short-term loans primarily used by real estate investors for property acquisition and renovation projects.
Mortgages that allow borrowers to pay only the interest for an initial period, resulting in lower monthly payments upfront.
Financing solutions tailored for real estate investors purchasing rental properties, fix-and-flip projects, or investment portfolios.
Home loans for borrowers who have an Individual Taxpayer Identification Number instead of a Social Security number.
Non-QM mortgages that use a CPA-prepared profit and loss statement to verify income for self-employed borrowers.
Home loans with interest rates that adjust periodically based on market conditions after an initial fixed-rate period.
Specialized mortgage programs designed to support homeownership in underserved communities with flexible qualification criteria.
Mortgages that meet the guidelines and loan limits set by Fannie Mae and Freddie Mac for secondary market purchase.
Financing for building a new home or making major renovations, typically converting to a permanent mortgage upon completion.
Traditional mortgage financing not backed by a government agency, offering flexible terms and competitive rates for qualified borrowers.
Innovative loan products that leverage projected home equity growth to provide favorable financing terms.
Government-insured mortgages from the Federal Housing Administration with low down payments and flexible credit requirements.
A revolving line of credit secured by your home equity that allows you to borrow funds as needed during a draw period.
A fixed-rate second mortgage that provides a lump sum of cash by borrowing against the equity built in your home.
Mortgages that exceed the conforming loan limits set by the FHFA, designed for financing high-value luxury properties.
Loans for homeowners aged 62 and older that convert home equity into cash without requiring monthly mortgage payments.
Government-backed zero down payment mortgages for eligible rural and suburban homebuyers who meet income limits.
Government-guaranteed mortgages for eligible veterans, active-duty service members, and surviving spouses with zero down payment.