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Adjustable Rate Mortgages (ARMs) in San Dimas
San Dimas sits in the eastern San Gabriel Valley where home values compete with Inland Empire pricing. ARMs give you buying power when you're not planning to stay 30 years.
Most buyers here choose 5/1 or 7/1 ARMs to lock lower rates during the years they'll actually own the property. The initial fixed period covers typical ownership timelines.
You need 620 credit for most ARMs, though stronger profiles unlock better margins. Lenders calculate qualification using the fully indexed rate, not just the teaser rate.
Expect 5-20% down depending on loan amount and product. Jumbo ARMs require larger reserves since adjustment caps matter more at higher balances.
Credit unions offer competitive ARM margins but limited adjustment structures. National lenders provide more cap options and better rates for buyers with $1M+ loans.
Not every wholesale lender prices ARMs aggressively in California. We shop 200+ lenders because margin differences of 0.25% compound over adjustment periods.
ARMs make sense if you're relocating in 5-7 years or expect income growth to support refinancing. They're wrong if you're stretching to afford the payment and can't handle adjustments.
I steer clients toward 2/2/5 cap structures over 5/2/5 options. The lower periodic cap protects you better when rates spike between adjustment dates.
ARMs typically start 0.50-1.00% below fixed-rate loans. That's $200-400 monthly savings on a $600K mortgage, real money if you're prioritizing cash flow early.
Conventional fixed loans beat ARMs if you're staying 10+ years or rates are already low. Jumbo ARMs shine when you're borrowing $1M+ and want flexibility.
San Dimas borders both LA County and San Bernardino County. Properties near the eastern edge sometimes appraise lower, affecting loan-to-value calculations for ARMs.
The foothill location means some homes sit on larger lots with higher property taxes. Factor tax adjustments into your payment calculation since those don't stay fixed either.
You can put 5% down on conforming ARMs with strong credit. Jumbo ARMs typically require 10-20% depending on loan amount and lender appetite.
Choose the fixed period matching your ownership timeline. A 7/1 costs slightly more upfront but protects you two extra years if plans change.
Yes, most borrowers refinance 6-12 months before adjustment. You'll need equity and qualifying income for whatever rates look like then.
Your periodic cap limits increases to 2% per adjustment on most products. The lifetime cap usually sits at 5% above your start rate.
Yes, ARMs fit investors who plan to sell or refinance within 5-7 years. You'll need 15-25% down and stronger reserves than owner-occupied ARMs.
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.
Adjustable rate mortgages held in a lender's portfolio rather than sold on the secondary market, offering more flexible terms.
Non-QM mortgages that use a CPA-prepared profit and loss statement to verify income for self-employed borrowers.
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.