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Portfolio ARMs in San Dimas
San Dimas sits in the San Gabriel Valley where property types vary from starter homes to foothill estates. Portfolio ARMs work here because local lenders hold these loans instead of selling them to Fannie or Freddie.
This loan type fits self-employed borrowers, real estate investors, and anyone who doesn't fit the conventional underwriting box. San Dimas has enough professional business owners and rental property holders to make portfolio products relevant.
Expect 20-25% down minimum, though some portfolio lenders accept 15% for strong borrowers. Credit scores typically start at 660, but I've closed deals at 640 when compensating factors exist.
Income documentation varies by lender. Most accept bank statements, 1099 forms, or asset depletion instead of tax returns. The underwriter has more discretion than with agency loans.
Portfolio ARM lenders include regional banks, credit unions, and private lending institutions. Each sets their own underwriting standards since they're keeping the risk.
Rate adjustments happen annually after an initial fixed period of 3, 5, or 7 years. Caps protect you from massive payment jumps. Most programs limit increases to 2% per year and 6% over the loan life.
Portfolio ARMs cost more upfront than conventional loans. You'll pay higher rates and origination fees because the lender carries more risk by holding non-conforming debt.
I use these for clients planning to sell or refinance within 5-7 years. The adjustable rate matters less when you won't hit the adjustment period. They're also smart for seasonal income earners who can't show consistent W-2 wages.
Bank statement loans offer fixed rates while portfolio ARMs give you the adjustable structure. DSCR loans focus purely on rental income without personal income review.
Choose portfolio ARMs when you want lower initial payments and flexible qualification. Pick conventional ARMs when you have W-2 income and want the lowest possible rate. Standard investor loans work if the property cash flows strongly.
San Dimas properties range from tract homes to custom hillside builds. Portfolio lenders evaluate unusual properties that conventional underwriting rejects—homes on large lots, mixed-use buildings, or properties needing work.
Los Angeles County transfer taxes and HOA complexity factor into your approval. Portfolio lenders review the full property profile, not just the appraisal number. They want sustainable value in their held portfolio.
Your rate adjusts based on an index plus a margin, typically capped at 2% per year. Most borrowers refinance or sell before the first adjustment hits.
Yes, portfolio lenders accept 1099 income with 12-24 months of statements. They calculate qualifying income differently than agency underwriting requires.
Some local credit unions hold portfolio loans, but their programs change frequently. Regional banks typically offer more consistent portfolio ARM products.
Expect 0.5-1.5% above comparable conventional ARMs initially. The premium pays for underwriting flexibility and non-conforming approval.
Yes, many portfolio lenders allow investment properties. They'll review rental income potential and your management experience during underwriting.
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.