Loading
Loading
Temple City attracts self-employed professionals and real estate investors who need loans that don't fit Fannie Mae boxes. Portfolio ARMs work here because lenders make their own rules.
These loans stay on a bank's books instead of getting sold to investors. That means underwriters can approve deals conventional lenders reject outright.
Portfolio ARMs in Temple City
Most portfolio ARM lenders want 20-25% down and credit scores above 660. They'll verify income through bank statements, 1099s, or rental property cash flow instead of W-2s.
Debt-to-income ratios matter less here than your actual cash flow. If you show consistent deposits, you can qualify even with irregular income patterns.
Local decision guide
Use this guide to connect portfolio arms eligibility, lender expectations, and local market factors before comparing payment options in Temple City.
Temple City attracts self-employed professionals and real estate investors who need loans that don't fit Fannie Mae boxes. Portfolio ARMs work here because lenders make their own rules.
These loans stay on a bank's books instead of getting sold to investors. That means underwriters can approve deals conventional lenders reject outright.
Most portfolio ARM lenders want 20-25% down and credit scores above 660. They'll verify income through bank statements, 1099s, or rental property cash flow instead of W-2s.
About 15-20 of our lenders offer portfolio ARMs, each with different rate structures and adjustment caps. Some start with 3-year fixed periods, others offer 5 or 7 years.
Rates typically run 0.5-1.5% higher than conforming ARMs at origination. The trade-off is getting approved when traditional lenders say no.
I use portfolio ARMs for Temple City buyers planning to sell or refinance within 5-7 years. The adjustable rate risk matters less when you have an exit strategy.
These loans shine for 1031 exchange buyers who need fast closings or self-employed borrowers tired of fighting with conventional underwriters. Ask about prepayment penalties before committing.
Bank statement loans offer similar flexibility with fixed rates, while DSCR loans skip personal income entirely for investment properties. Portfolio ARMs make sense when you want the lowest possible start rate.
Standard ARMs beat portfolio products on rate if you can qualify conventionally. The portfolio version exists for borrowers who can't check every Fannie Mae box.
Temple City's housing stock includes many older homes that appraisers can flag for condition issues. Portfolio lenders often approve properties conventional underwriters reject.
The city's mix of owner-occupants and investors creates demand for both primary residence and investment property portfolio ARMs. Lenders price these differently based on occupancy.
Most adjust annually after the initial fixed period ends. Adjustment caps typically limit increases to 2% per year and 5-6% over the loan life.
Yes, but check your loan docs for prepayment penalties. Many portfolio ARMs charge 2-3% if you refinance in the first 3 years.
Most want 6-12 months of mortgage payments in reserves. Investment properties typically require higher reserves than primary residences.
Lenders accept 12-24 months of bank statements, profit and loss statements, or 1099 forms. They calculate income from average deposits.
Yes, most lenders go up to 4 units. Expect higher rates and down payments for properties with 3-4 units.