Loading
Loading
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.
Portfolio ARMs in Beverly Hills
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.
Local decision guide
Use this guide to connect portfolio arms eligibility, lender expectations, and local market factors before comparing payment options 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.
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.