Question 1

What is a portfolio ARM exactly?

Accepted Answer

It's an adjustable-rate mortgage a lender holds in-house rather than selling to investors. That lets the lender set its own terms.

Question 2

Can I use a portfolio ARM for a rental property in Susanville?

Accepted Answer

Yes. Portfolio lenders often allow investment properties. Some pair well with DSCR underwriting to qualify on rental income.

Question 3

How long is the fixed-rate period?

Accepted Answer

Common options are 3, 5, 7, or 10 years fixed before the rate adjusts annually. Your lender sets the specific structure.

Question 4

Are portfolio ARMs harder to qualify for than conventional loans?

Accepted Answer

Not always. They're often easier for self-employed or non-traditional borrowers. Guidelines vary by lender, not by agency rules.

Question 5

What happens when the rate adjusts?

Accepted Answer

It moves based on an index, usually SOFR, plus a margin. Most loans cap annual increases at 2% and lifetime increases at 5%.

Question 6

Does SRK CAPITAL work with Susanville properties?

Accepted Answer

Yes. We regularly place loans in rural California markets. Portfolio lenders in our network underwrite Lassen County properties manually.

Portfolio ARMs in Susanville: Flexible Financing for Lassen County