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Portfolio ARMs in Bell
Bell's workforce includes many self-employed business owners and gig workers who earn solid income but can't document it through tax returns. Portfolio ARMs give lenders the freedom to approve borrowers who don't fit Fannie Mae's boxes.
These loans stay on a lender's books instead of getting sold to investors. That means underwriters can use common sense on income verification and property types that agencies reject.
Most portfolio ARM lenders accept bank statement income at 600-640 credit scores. You'll need 15-25% down depending on loan size and property type.
The adjustable rate typically starts 1-2% below conventional rates, then adjusts after 3, 5, or 7 years based on an index plus margin. Rate caps limit how much your payment can jump.
Only about 30 of our 200 wholesale lenders offer true portfolio ARMs. Each has different overlays on property condition, loan size, and borrower profile.
Some cap at $2M. Others go to $5M but want 700+ credit. A few specialize in mixed-use buildings that conventional lenders won't touch. Shopping this correctly saves you 0.5-1% on rate.
Portfolio ARMs make sense when you plan to sell or refinance before the first adjustment. If you're flipping or expect income to stabilize in 3-5 years, the lower initial rate saves real money.
They're terrible if you want payment certainty. I've seen borrowers panic when rates adjust up 2% after year five. Know your exit strategy before you sign.
Bank statement loans offer fixed rates with similar approval flexibility. You pay 0.5-0.75% more upfront but eliminate rate adjustment risk.
DSCR loans work better for pure investment properties where rental income covers the mortgage. Portfolio ARMs shine when you need owner-occupied flexibility or the property doesn't cash flow yet.
Bell's housing stock includes many older properties and non-standard construction that agencies flag. Portfolio lenders care more about appraisal value than build year or material type.
Los Angeles County transfer taxes and fees add 1-2% to closing costs. Factor that into your down payment calculation since portfolio ARM lenders typically won't roll costs into the loan.
Most portfolio ARMs cap at 2% per adjustment and 5-6% lifetime. Your initial rate of 7% could max out at 12-13% worst case.
Yes, there's typically no prepayment penalty after 6-12 months. Many borrowers refinance into fixed rates once income documentation improves.
Yes, portfolio lenders accept properties built in any decade as long as they appraise and pass basic safety inspection.
Most lenders accept 12-24 months of personal or business bank statements. They calculate income as monthly deposits minus outliers.
Your new rate equals the index value plus your margin. If SOFR is 4% and your margin is 2.5%, your rate becomes 6.5%.
Mortgage financing for independent contractors and freelancers who earn 1099 income instead of traditional W-2 wages.
Mortgage programs that allow borrowers to qualify based on liquid assets rather than traditional employment income.
Non-QM loans that use 12 to 24 months of bank statements to verify income for self-employed borrowers.
Short-term financing that bridges the gap between buying a new property and selling an existing one.
Debt Service Coverage Ratio loans that qualify investors based on a rental property's income rather than personal income.
Mortgage programs designed for non-US citizens and non-permanent residents who want to purchase property in the United States.
Asset-based short-term loans primarily used by real estate investors for property acquisition and renovation projects.
Mortgages that allow borrowers to pay only the interest for an initial period, resulting in lower monthly payments upfront.
Financing solutions tailored for real estate investors purchasing rental properties, fix-and-flip projects, or investment portfolios.
Home loans for borrowers who have an Individual Taxpayer Identification Number instead of a Social Security number.
Non-QM mortgages that use a CPA-prepared profit and loss statement to verify income for self-employed borrowers.
Home loans with interest rates that adjust periodically based on market conditions after an initial fixed-rate period.
Specialized mortgage programs designed to support homeownership in underserved communities with flexible qualification criteria.
Mortgages that meet the guidelines and loan limits set by Fannie Mae and Freddie Mac for secondary market purchase.
Financing for building a new home or making major renovations, typically converting to a permanent mortgage upon completion.
Traditional mortgage financing not backed by a government agency, offering flexible terms and competitive rates for qualified borrowers.
Innovative loan products that leverage projected home equity growth to provide favorable financing terms.
Government-insured mortgages from the Federal Housing Administration with low down payments and flexible credit requirements.
A revolving line of credit secured by your home equity that allows you to borrow funds as needed during a draw period.
A fixed-rate second mortgage that provides a lump sum of cash by borrowing against the equity built in your home.
Mortgages that exceed the conforming loan limits set by the FHFA, designed for financing high-value luxury properties.
Loans for homeowners aged 62 and older that convert home equity into cash without requiring monthly mortgage payments.
Government-backed zero down payment mortgages for eligible rural and suburban homebuyers who meet income limits.
Government-guaranteed mortgages for eligible veterans, active-duty service members, and surviving spouses with zero down payment.