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Imperial County's median household income of $56,393 stretches across a market where homes sit well below state averages. The Autism Awareness F.A.I.R. at Eager Park last year showed the community's focus on family and local investment.
ARM borrowers in Imperial typically benefit from lower starting rates than 30-year fixed options. The trade-off is simple: your rate adjusts after the initial fixed period.
After 3, 5, or 7 years
ARM Adjustment
620 (640+ preferred)
Minimum FICO
5% to 20%
Down Payment Range
6% above initial rate
Lifetime Rate Cap
30–45 days
Closing Timeline
Portfolio ARMs in Imperial
Portfolio ARMs require a minimum FICO score of 620 for most lenders, though 640+ opens better pricing. Down payments range from 5% to 20% depending on the lender and loan amount.
Debt-to-income ratio caps at 43% to 50% depending on the lender's overlays. Your monthly ARM payment during the fixed period is calculated at the initial rate.
Local decision guide
Use this guide to connect portfolio arms eligibility, lender expectations, and local market factors before comparing payment options in Imperial.
Imperial County's median household income of $56,393 stretches across a market where homes sit well below state averages. The Autism Awareness F.A.I.R. at Eager Park last year showed the community's focus on family and local investment.
ARM borrowers in Imperial typically benefit from lower starting rates than 30-year fixed options. The trade-off is simple: your rate adjusts after the initial fixed period.
Portfolio ARMs require a minimum FICO score of 620 for most lenders, though 640+ opens better pricing. Down payments range from 5% to 20% depending on the lender and loan amount.
California portfolio lenders — banks that hold loans in-house rather than selling them — dominate the ARM market. These lenders can set their own overlays and pricing, so rates and terms vary widely.
ARM underwriting is faster than fixed-rate in some cases because the initial rate is lower and the risk is shorter. Most portfolio lenders close ARMs in 30 to 45 days.
Portfolio ARMs make sense in Imperial for buyers who plan to refinance or sell within five years. The county's median income of $56,393 means monthly savings from a lower ARM rate compound quickly.
The math breaks down when you factor in the adjustment cap. Most ARMs cap at 2% per adjustment period and 6% lifetime. On a $300,000 loan, a 6% rate jump adds roughly $180 monthly.
A 30-year fixed-rate mortgage locks your payment for 360 months — no surprises, no adjustments. Portfolio ARMs start lower but reset after year three, five, or seven depending on the product.
In Imperial's market, the monthly savings from an ARM during the fixed period can reach $150 to $250 on a typical purchase. If you're confident you'll refinance or move before the adjustment, that's real money.
The Mexicali Meat Capital Festival draws cross-border shoppers and diners to the Imperial Valley region. That foot traffic supports local retail and dining, which can stabilize property values in walkable neighborhoods.
Schools in Imperial County face funding pressures, and recent layoffs at sports program providers have reduced extracurricular options. If you have children, factor in private school costs or longer commutes to better-funded districts.
The first number is how many years your rate stays fixed. A 3/1 adjusts after year three; a 5/1 adjusts after year five. Both then reset annually. The 5/1 starts slightly higher but gives you two extra years of payment certainty.
No. ARMs have caps. Most portfolio ARMs cap at 2% per adjustment and 6% lifetime. On a $300,000 loan at 5%, the worst case is roughly 11% — your payment rises but it's not unlimited. Know your cap before you sign.
Not required, but it's smart planning. If rates are lower when your ARM is about to adjust, refinancing locks in savings. If rates are higher, you may accept the adjustment. Either way, start shopping 120 days before your adjustment date.
Probably not. ARMs work best for buyers with a clear exit plan — sale or refinance within five to seven years. If you're staying ten years or longer, a fixed rate's predictability is worth the higher upfront payment.
Portfolio ARM rates typically run 0.25% to 0.5% lower than 30-year fixed at the same lender. That gap varies by market and lender. Call for today's quotes on both products to see the exact spread.