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Portfolio ARMs in Lomita
Portfolio ARMs work well in Lomita's mix of starter homes and investment properties. These loans skip Fannie and Freddie rules, which matters for self-employed borrowers and investors.
Lenders keep these loans on their books instead of selling them. That means they set their own approval standards and can bend on documentation requirements that kill conventional deals.
Most portfolio ARM lenders want 680+ credit and 20% down minimum. Self-employed borrowers can often qualify with 12-24 months of bank statements instead of tax returns.
These loans shine for borrowers traditional lenders reject. Think multiple properties, jumbo amounts with non-W-2 income, or recent credit events that don't reflect current ability to pay.
Only about 15-20 lenders in our network offer true portfolio ARMs. Each one prices differently based on what risk they're comfortable holding.
Rate spreads between lenders run 0.5-1.5% on identical scenarios. One bank's deal-killer is another's preferred profile, which is why shopping 200+ lenders matters with portfolio products.
Portfolio ARMs get pitched as silver bullets, but the rate is usually 1-2% higher than conventional. Run the numbers on whether flexibility justifies the premium.
Watch adjustment caps closely. Some lenders cap annual adjustments at 2% but allow 5% lifetime swings. Others do 1% annual with 6% lifetime. The index plus margin tells you where rates could go.
If you've got W-2 income and clean credit, a standard ARM beats portfolio pricing every time. Portfolio products make sense when you can't qualify conventionally.
DSCR loans work better for pure investment plays. Bank statement loans often beat portfolio ARMs for self-employed owner-occupants. We compare all three on your actual numbers.
Lomita sits between Torrance and San Pedro with properties ranging from $600K condos to $1.2M single-family homes. Portfolio ARMs handle both price points without agency loan limits.
Investors buying Lomita rentals often use portfolio ARMs to close faster than DSCR loans allow. The flexibility on income verification cuts 2-3 weeks off typical timelines when competing offers matter.
The lender keeps it instead of selling to Fannie or Freddie. That lets them approve borrowers and properties that don't fit standard boxes.
Depends on the lender and your situation. Most want 12-24 months of bank statements if you're self-employed, or alternative income proof conventional loans won't accept.
Adjustable. Most fix for 3, 5, or 7 years then adjust annually based on an index plus margin. Check caps on how much rates can increase.
Yes, most borrowers refinance into conventional loans once income documentation or credit improves. No prepayment penalties on most portfolio ARMs we broker.
Absolutely. Many investors prefer them over DSCR loans for faster closing and more flexible property condition requirements.
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.