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Adjustable Rate Mortgages (ARMs) in West Hollywood
West Hollywood sits in one of LA County's higher-price zones. ARMs make the most sense here when you're planning a short hold or expect income to climb.
The initial rate discount typically runs 0.5-1.0% below fixed rates. On a $1.2M condo, that's $450-$900 less per month during the fixed period.
Underwriting looks at the fully-indexed rate, not just the start rate. Lenders qualify you at the higher of the start rate plus 2% or the note rate.
Credit needs stay the same as fixed loans: 620 minimum for most programs, 640-680 for stronger pricing. Down payment starts at 5% for owner-occupied conforming ARMs.
Most wholesale lenders offer ARMs, but not all price them competitively. The best pricing usually comes from larger correspondent shops and credit unions that hold servicing.
Jumbo ARMs above LA County's conforming limit get priced individually. Shop at least three lenders because spreads between best and worst can hit 0.75%.
West Hollywood buyers often go ARM when they're moving up in 3-5 years or working in entertainment with variable comp. I rarely recommend ARMs to first-time buyers planning to stay 10+ years.
The 7/6 ARM hits the sweet spot for most: seven years fixed, then adjusts every six months. The 5/6 saves another 0.125-0.25% but only makes sense if you're confident about the timeline.
Conventional fixed loans cost more upfront but eliminate rate risk. ARMs save you money if you sell or refi before adjustment, but you're betting on your timeline and future rates.
Jumbo ARMs work differently than conforming. The rate discount shrinks as loan size grows, and adjustment caps vary by lender. Above $2M, the ARM advantage often disappears.
West Hollywood's condo market moves fast when inventory drops. ARMs help you compete by lowering your payment and boosting buying power during the fixed period.
HOA dues here run high, often $600-$1200 monthly. Lenders include that in your debt ratio, so the ARM's lower start payment creates more qualifying room than it would in single-family markets.
ARMs typically start 0.5-1.0% below fixed rates as of February 2026. The exact discount depends on loan size, fixed period length, and your credit profile.
After the fixed period ends, your rate adjusts based on the index plus margin. Most ARMs cap adjustments at 2% per change and 5% over the loan's life.
Yes, most borrowers refi or sell before adjustment. You need qualifying credit and equity, and refinancing makes sense only if rates haven't climbed significantly.
ARMs work well on condos when you're planning a shorter hold. The lower payment helps offset high HOA dues and improves your qualifying ratios.
Take the 5/6 if you're confident about your timeline and want the lowest rate. Choose the 7/6 if you want more flexibility or your plans could shift.
No, the rate discount shrinks as loan size increases. Above $2M, ARMs often save only 0.25-0.5% versus fixed, sometimes less.
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.