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Portfolio ARMs in Paramount
Paramount borrowers often hit walls with standard loans—self-employment income, recent credit events, or non-traditional properties. Portfolio ARMs bypass those roadblocks because lenders keep these loans instead of selling them to Fannie Mae.
This loan type works well for Paramount's mixed housing stock of single-family homes and investment properties. Lenders can approve deals that automated underwriting systems reject, using common sense instead of rigid algorithms.
Most portfolio ARM lenders want 640+ credit, though some accept 600 for strong compensating factors. You'll typically need 15-25% down, depending on property type and income documentation.
Income verification ranges from full tax returns to 12-24 months of bank statements. Recent bankruptcies or foreclosures don't automatically disqualify you—lenders evaluate the full picture, not just credit scores.
Portfolio ARM lenders fall into two camps: regional banks building local relationships and private lenders chasing higher yields. Each lender sets their own rates, terms, and risk appetite—shopping multiple options matters.
Rates vary by borrower profile and market conditions. Expect initial rates 0.5-2% above conventional ARMs, with adjustment caps protecting you from dramatic payment swings. Some lenders offer interest-only options for cash flow management.
I send Paramount clients to portfolio lenders when they make good money but can't prove it conventionally—contractors, gig workers, business owners writing off everything. These loans also rescue deals on properties with ADUs, zoning issues, or deferred maintenance.
The adjustable rate scares some borrowers, but it's the price of flexibility. Most of my clients refinance within 3-5 years anyway—once they've seasoned their credit, stabilized their income, or finished property improvements. The ARM gets them in the door.
Portfolio ARMs cost more than conventional loans but accept borrowers conventional lenders reject. Compared to hard money, you get lower rates and longer terms—hard money runs 8-12%, portfolio ARMs typically 6-9%.
DSCR loans work better for pure investment properties with rental income. Bank statement loans make sense if you only need income flexibility but have good credit. Portfolio ARMs handle the messiest scenarios—multiple disqualifying factors at once.
Paramount's affordability attracts investors and first-time buyers stretching to enter LA County. Portfolio ARMs help both groups—investors can qualify on rental income projections, buyers can use non-traditional income documentation.
The city's older housing stock sometimes presents condition issues that conventional appraisals flag. Portfolio lenders care more about value than cosmetic problems, approving homes that need minor repairs without requiring completion before closing.
Most adjust annually after an initial 3, 5, or 7-year fixed period. Adjustment caps limit increases to 2% per year and 5-6% over the loan life, preventing runaway payments.
Absolutely—that's the typical exit strategy. Once your credit improves or income documentation straightens out, refinancing to a conventional fixed-rate loan makes sense.
Portfolio lenders accept bank statements, 1099s, or asset depletion calculations. They care about cash flow, not how your accountant categorizes it.
Yes, many lenders use projected rental income for qualification. DSCR loans may offer better terms if the property cash flows well, though.
Expect 15-20% for primary residences, 20-25% for investment properties. Stronger credit and income docs can sometimes lower 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.