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Portfolio ARMs in Madera
Portfolio ARMs work well in Madera's diverse property market. These loans sit on a lender's books instead of getting sold to Fannie Mae or Freddie Mac.
That means underwriters can approve deals that standard guidelines reject. Self-employed borrowers, multi-unit investors, and buyers with credit events find options here.
Most portfolio ARM lenders in Madera want 15-25% down and credit scores starting around 620. Income verification varies wildly—some accept bank statements, others use rental income.
You'll pay higher rates than conventional ARMs because lenders take more risk. Expect rates 1-3% above standard ARM pricing depending on your profile.
Only about 20 of our 200+ lenders offer true portfolio ARMs. Each one writes their own rules since they're holding the risk.
One lender might approve rental income without two years of landlord history. Another might finance mixed-use properties in Madera that agencies won't touch. Shopping matters more here than anywhere else.
Portfolio ARMs make sense when your income or property doesn't fit a box. We see these work for Madera contractors who write off too much, investors buying fixer properties, and borrowers two years past a foreclosure.
The ARM structure keeps payments lower initially, which helps with qualifying ratios. Just understand the rate adjusts—usually after 3, 5, or 7 years. Read the adjustment caps carefully.
Bank statement loans offer another path for self-employed Madera borrowers, but they're usually fixed-rate. DSCR loans work for pure rental properties where you don't need personal income.
Portfolio ARMs beat both when you need the lowest possible starting payment or when your property type doesn't qualify elsewhere. The tradeoff is rate uncertainty down the road.
Madera County sees plenty of rural properties, agricultural land, and non-standard construction that agencies reject. Portfolio lenders handle these better than conventional programs.
Properties in unincorporated areas or on larger parcels often need portfolio financing. Same goes for mixed-use buildings and properties needing immediate repairs.
Expect rates 1-3% above conventional ARMs depending on down payment and credit. Rates vary by borrower profile and market conditions.
Yes, if your credit and income improve. Many borrowers refinance into conventional loans after 2-3 years to lock lower fixed rates.
Not always. Many accept 12-24 months of bank statements instead, which works better for self-employed borrowers with significant write-offs.
Rural homes, agricultural properties, mixed-use buildings, and fixer properties often require portfolio loans. Anything agencies won't touch fits here.
Most adjust annually after the initial fixed period ends. Fixed periods typically run 3, 5, or 7 years before adjustments begin.
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.