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Portfolio ARMs in Commerce
Commerce sits at the crossroads of industrial and residential real estate. Properties here often fall outside standard loan boxes.
Portfolio ARMs work when you need flexible underwriting or unique property types. Lenders keep these loans in-house instead of selling them off.
Most portfolio ARM lenders want 20-30% down and 680+ credit scores. Income verification varies widely by lender.
These loans shine for self-employed borrowers, investors with multiple properties, or buyers with credit events in their past. Each lender writes their own guidelines.
Only about 15-20 lenders in our network write true portfolio ARMs. Each has different risk appetites and property preferences.
Rate spreads between lenders can hit 1.5 points on the same deal. Shopping multiple portfolio lenders is not optional here.
Portfolio ARMs make sense when conventional loans say no but the deal makes sense financially. I've closed these for borrowers with 1099 income proving $20K monthly but no tax returns.
The adjustable rate piece scares some buyers unnecessarily. Most portfolio ARMs have 5 or 7 year fixed periods. You'll likely refinance before the first adjustment hits.
Compare portfolio ARMs to bank statement loans first. Both serve self-employed borrowers but documentation differs significantly.
DSCR loans work better for pure investment properties in Commerce. Portfolio ARMs make more sense for owner-occupied or properties with income documentation challenges.
Commerce properties near the industrial corridor often appraise weird. Portfolio lenders handle these valuation quirks better than conforming loan underwriters.
Mixed zoning is common here. A property that's part commercial creates appraisal issues that kill conventional loans but portfolio lenders can navigate.
Most lenders want 680 minimum. Some go to 640 with higher rates and larger down payments.
It varies by lender. Some accept bank statements only. Others want tax returns or asset depletion calculations.
Yes, expect rates 1-2% higher. You're paying for underwriting flexibility and non-standard approvals.
Yes, but DSCR loans often work better for pure rentals. Portfolio ARMs shine for owner-occupied or mixed-use scenarios.
Most portfolio ARMs fix for 5-7 years first. The adjustment period begins after that initial fixed term ends.
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.