Question 1

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

Accepted Answer

Most lenders want 620 minimum, though some approve 580 with 25% down. Better credit gets you lower margins and adjustment caps.

Question 2

Can I use a portfolio ARM for a fixer property?

Accepted Answer

Yes, that's one of the best uses. Portfolio lenders approve properties needing work that FHA 203k or conventional loans reject.

Question 3

How does the rate adjustment work?

Accepted Answer

After the fixed period ends, your rate adjusts annually based on an index plus a margin. Check your loan docs for adjustment caps and frequency.

Question 4

Do portfolio ARMs require PMI if I put less than 20% down?

Accepted Answer

Usually no. Most portfolio lenders price the higher risk into the rate instead of charging separate mortgage insurance.

Question 5

Can I refinance before the rate adjusts?

Accepted Answer

Yes, most borrowers refinance within 3-5 years into a fixed rate conventional loan once the property is renovated and their income is stable.

Portfolio ARMs in Clearlake: Flexible Financing for Properties That Don't Fit the Box