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Portfolio ARMs in Beverly Hills
Beverly Hills doesn't play by conventional lending rules. Properties here exceed conforming limits by wide margins, and buyers often have complex income profiles that don't fit Fannie Mae's boxes.
Portfolio ARMs work well in this market because private banks keep these loans on their books. They underwrite to common sense instead of automated underwriting systems. That flexibility matters when you're financing a $5M property with multiple income sources.
These loans typically require 20-30% down and 680+ credit scores, though some private banks go lower for established clients. Income documentation varies widely—some lenders want full tax returns, others accept asset depletion or commercial lease schedules.
Portfolio lenders care more about your total relationship than debt-to-income ratios. A $10M investment account can offset higher ratios that would disqualify you elsewhere. The underwriter actually reads your file instead of feeding it to an algorithm.
About a dozen banks in California offer true portfolio ARMs. Most are private banks serving high-net-worth clients. They're not advertising on Zillow—you need a broker who knows which institutions lend in Beverly Hills and what each one will actually approve.
Rate spreads vary wildly. Some portfolio lenders price 50 basis points above prime for well-qualified borrowers. Others charge 200+ basis points for complex deals. Shopping matters here more than anywhere else in mortgage lending.
Portfolio ARMs shine for borrowers with foreign income, equity compensation, or irregular W-2 patterns. I've closed these for studio executives with profit participation, tech founders post-exit, and international buyers with US assets but offshore earnings.
The adjustment caps matter more in this loan type than conventional ARMs. Most portfolio products cap at 2% per adjustment and 5-6% lifetime. Read the fine print on margin and index—some lenders use SOFR, others use their own cost of funds. That difference can cost you thousands when rates move.
Portfolio ARMs often beat jumbo fixed rates for borrowers who don't fit standard boxes. If you qualify for conventional jumbo, take it—the rate will be better. But if you're self-employed with write-offs, show assets instead of income, or need more flexible ratios, portfolio makes sense.
DSCR loans work better for pure investment properties. Bank statement loans suit self-employed W-2 earners. Portfolio ARMs fit everyone else—especially borrowers with substantial assets but non-traditional income documentation.
Beverly Hills properties often come with unusual features that complicate financing. Guest houses, pools over 1,000 square feet, and properties exceeding half an acre all trigger special appraisal requirements. Portfolio lenders handle these better than conventional channels.
Many buyers here want interest-only options during the initial fixed period. Portfolio ARMs accommodate this easily. Conventional jumbo products rarely offer IO anymore, but private banks will structure it for qualified borrowers.
Most portfolio ARMs offer 3, 5, or 7-year fixed periods before adjusting. The 5-year fixed is most common for primary residences in this price range.
Yes, several portfolio lenders approve foreign nationals with US assets. You'll typically need 30-40% down and substantial reserves in US accounts.
Portfolio lenders routinely finance properties above $3M, often up to $10M+ with appropriate down payment. Loan limits are more flexible than jumbo products.
Your rate adjusts based on the index plus margin, subject to periodic caps. Most cap the first adjustment at 2% above your initial rate regardless of index movement.
Expect 6-12 months reserves minimum. Higher-priced properties or complex income may require 18-24 months of principal, interest, taxes, and insurance in liquid assets.
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.