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Portfolio ARMs in San Marino
San Marino's luxury market attracts buyers who don't fit standard underwriting boxes. Portfolio ARMs give lenders flexibility to approve complex income profiles common among wealthy borrowers.
These loans stay in the lender's portfolio instead of being sold to Fannie or Freddie. That means the lender sets the rules, not government agencies.
We see Portfolio ARMs close on estates where conventional ARMs hit debt-to-income roadblocks. The adjustable rate lets lenders offer lower initial payments while protecting their risk over time.
Most portfolio ARM lenders want 20-30% down and credit scores above 680. But those are starting points, not hard stops.
Income verification varies widely. Some lenders accept CPA letters for business owners. Others review asset statements instead of pay stubs.
Loan amounts range from $1 million to $10 million depending on the lender. Properties must appraise, but lenders allow more creative income documentation than agency loans require.
Only about 15 lenders in our network offer true portfolio ARMs. Most are private banks and regional institutions with balance sheet capacity.
Rate spreads vary dramatically. We've seen 5-year ARMs quoted 100 basis points apart on identical borrower profiles.
Adjustment caps and margins matter more than the initial teaser rate. A loan starting at 6% that can jump 3% annually creates more risk than a 6.5% loan capped at 1% per year.
Portfolio ARMs work best for buyers who plan to refinance within 5-7 years or expect significant income growth. San Marino buyers often fit that profile.
We match these loans to clients with stock comp packages, carried interest, or business sale proceeds. Traditional lenders reject these income sources or haircut them heavily.
The wrong portfolio ARM creates refinance risk if your income documentation doesn't improve. We always stress-test whether you can refi into conventional terms before the rate adjusts.
Bank statement loans offer similar flexibility but use 12-24 months of deposits instead of tax returns. Portfolio ARMs give you the rate benefit of an adjustable structure.
DSCR loans work for investment properties only. Portfolio ARMs cover primary residences and second homes in addition to rentals.
Conventional ARMs max out at conforming loan limits. Portfolio ARMs go well beyond those caps, which matters in San Marino's price range.
San Marino properties rarely appraise low because the market has limited inventory and strong comps. That helps portfolio ARM approvals since lenders rely heavily on loan-to-value ratios.
Property tax reassessments in California stay capped under Prop 13, but new purchases reset the base. Portfolio lenders factor those higher payments into qualification differently than agency lenders.
Estate-sized properties sometimes carry income potential from guesthouses or accessory units. Portfolio lenders can credit that income where Fannie Mae wouldn't.
Most offer 3, 5, 7, or 10-year fixed periods. Five-year terms are most common and typically offer the best rate balance.
Yes, portfolio lenders combine W-2, K-1, rental income, and investments more flexibly than conventional loans allow.
Annual and lifetime caps limit how much your rate can increase. Most loans cap at 2% per year and 5-6% over the loan life.
Some do, typically 3-5 years. We avoid those unless the rate savings justify the restriction for your situation.
Scores above 740 get best pricing. Below 680, expect rate increases of 0.5-1% or higher down payment 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.