Question 1

How much higher are portfolio ARM rates compared to conventional?

Accepted Answer

Expect 1-2% higher than agency rates as of February 2026. The gap narrows when you have strong assets or substantial equity. Rates vary by borrower profile and market conditions.

Question 2

What happens when my rate adjusts on a portfolio ARM?

Accepted Answer

Your rate changes based on an index plus a margin, typically capped at 2% per adjustment and 5-6% lifetime. Check your loan docs for specific caps before closing.

Question 3

Can I refinance a portfolio ARM into a conventional loan later?

Accepted Answer

Yes, if you can document income conventionally and the property meets agency standards. Many borrowers use portfolio ARMs as bridges to conventional financing.

Question 4

Do portfolio lenders require appraisals in Bishop?

Accepted Answer

Yes, but they accept properties that agency appraisers flag for condition issues. Remote location matters less to portfolio lenders than to Fannie or Freddie.

Question 5

What income documentation works for Bishop portfolio ARMs?

Accepted Answer

Bank statements showing consistent deposits work best. Asset depletion and rental income also qualify. Lenders focus on cash flow patterns over W-2s or tax returns.

Portfolio ARM Financing in Bishop: Flexible Mortgages for Complex Scenarios