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Portfolio ARMs in Malibu
Malibu's coastal properties rarely fit conventional lending boxes. Portfolio ARMs give lenders freedom to approve loans based on asset strength rather than rigid agency guidelines.
Most Malibu buyers carry complex income streams—entertainment royalties, business ownership, stock portfolios. Portfolio ARMs let lenders underwrite the full financial picture instead of just W-2s.
No universal requirements exist since each lender sets their own rules. Most want 20-30% down and strong liquidity—$500K to several million in reserves depending on loan size.
Credit scores matter less than asset depth. We've closed deals at 650 FICO when the borrower showed $3M liquid and minimal debt. Income documentation varies by lender philosophy.
Only about 15 lenders in our network write true portfolio ARMs in Malibu's price range. Most are private banks and specialized mortgage banks, not your corner credit union.
Rate adjustments happen annually after an initial fixed period—usually 3, 5, or 7 years. Caps limit how much rates can jump, typically 2% per adjustment and 5-6% lifetime.
Portfolio ARMs work best for borrowers planning to sell or refinance within 5-7 years. Starting rates run 0.5-1.5% lower than fixed jumbo loans, saving serious money short-term.
We see these used for beach properties where buyers expect appreciation to outpace rate adjustments. Also common for self-employed borrowers who want lower payments now and can refinance later when income documentation improves.
Fixed jumbo loans offer rate certainty but cost more upfront. Bank statement loans work when you need income flexibility without betting on rate movements.
DSCR loans make sense for investment properties. Portfolio ARMs suit primary residences where you value initial savings and accept future rate risk.
Malibu's coastal location means strict environmental reviews and high insurance costs. Lenders price these risks into portfolio ARMs differently than standardized products.
Fire and flood insurance can add $10K-$30K annually. Portfolio lenders assess whether those costs still leave comfortable debt ratios, especially as rates adjust upward.
Your rate changes based on the index plus margin specified in your loan docs. Most adjust annually with 2% caps per adjustment and 5-6% lifetime caps protecting you from extreme jumps.
Yes, though some lenders charge prepayment penalties for the first 1-3 years. We structure these upfront based on your likely holding period to minimize costs.
Expect 0.5-1.5% lower starting rates compared to fixed jumbo loans. The exact spread depends on your financial profile and current market conditions.
Not always. Since lenders keep these loans, they set their own rules. Some accept bank statements or asset depletion instead of tax returns.
Most lenders want 680 minimum, but we've gotten approvals at 650 with strong reserves and low debt. Asset strength matters more than credit score alone.
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.