Question 1

How often does the rate adjust on portfolio ARMs?

Accepted Answer

Most adjust annually after a fixed period of 3, 5, or 7 years. Caps limit how much rates can jump per adjustment and over the loan life.

Question 2

Can I qualify with oil field 1099 income?

Accepted Answer

Yes, portfolio lenders accept 1099 income with 12-24 months of history. Bank statements showing consistent deposits work even better.

Question 3

Do portfolio ARMs require tax returns?

Accepted Answer

Not always. Many lenders underwrite to bank statements or asset depletion instead. Tax returns help but aren't mandatory.

Question 4

What down payment do I need in Taft?

Accepted Answer

Expect 20-25% minimum. Oil-dependent markets get treated as higher risk, pushing equity requirements up.

Question 5

Can I refinance before the first adjustment?

Accepted Answer

Yes, no prepayment penalty on most portfolio ARMs. Refinancing in years 3-5 is common when rates drop or income improves.

Portfolio ARM Loans in Taft: Flexible Terms Beyond Conventional Guidelines