Loading
Portfolio ARMs in Fairfax
Fairfax sits in one of California's most expensive markets where traditional lending often hits loan limits fast. Portfolio ARMs give lenders freedom to underwrite beyond agency guidelines.
These loans stay in-house instead of being sold to Fannie or Freddie. That means lenders can approve deals conventional underwriters would reject.
Most Fairfax borrowers using portfolio ARMs have complex income, own multiple properties, or need loan amounts above conforming limits. Standard products don't work for them.
Credit standards vary widely because each lender sets their own rules. Most want 680+ scores, but some go lower with compensating factors.
Down payment requirements typically start at 20% for primary homes and 25-30% for investment properties. Lenders price risk into rates rather than rejecting applications.
Income documentation is flexible compared to conventional loans. Bank statements, asset depletion, and irregular income streams all work if you can prove repayment ability.
Portfolio ARM lenders in Marin are pickier about property type and location than government-backed programs. They want areas with strong resale values.
Interest rates adjust after a fixed period, usually 3, 5, or 7 years. Initial rates run 0.5-1.5% higher than conforming loans because lenders price in the risk they're keeping.
Only a handful of wholesale lenders offer true portfolio ARMs. Most regional banks pulled back after 2008 and never returned to this space.
I use portfolio ARMs for clients who own multiple Bay Area rentals and can't qualify under DTI limits. The properties cash flow fine but their debt ratios look terrible on paper.
Self-employed borrowers in Fairfax often write off so much income that W-2 style underwriting kills their deals. Portfolio lenders look at deposits and assets instead.
The adjustment caps matter more than the initial rate. Make sure you understand the maximum your payment can increase at adjustment and over the loan's life.
These loans work best when you plan to sell or refinance before the first adjustment. Betting on long-term ownership with an ARM is risky in expensive markets.
DSCR loans beat portfolio ARMs for pure investment properties because they ignore personal income entirely. If the rental income covers the mortgage, you're approved.
Bank statement loans offer similar flexibility but with fixed rates. You pay a premium for that stability, usually 0.25-0.75% higher than comparable ARMs.
Jumbo ARMs through traditional lenders require perfect credit and full documentation. Portfolio ARMs trade lower rates for much easier qualification.
Fairfax properties under $1 million are rare, so most buyers here need non-conforming financing anyway. Portfolio lenders know Marin values and underwrite accordingly.
The town's mix of older homes and unique properties sometimes creates appraisal challenges. Portfolio lenders have more flexibility when comparable sales are scarce.
Many Fairfax buyers are equity-rich from previous Bay Area home sales. Portfolio ARMs let them use that equity without jumping through conventional hoops.
Marin's steady appreciation gives lenders confidence holding these loans long-term. That translates to better terms than you'd see in volatile markets.
Most programs cap first adjustment at 2% and lifetime at 5-6% above start rate. A loan starting at 7% could max out around 12-13% depending on terms.
Yes, portfolio lenders count rental income more liberally than conventional programs. They often use actual deposits rather than requiring lease agreements and tax returns.
Your rate moves based on an index plus a margin specified in your loan docs. Most use SOFR or Treasury indexes with 30-day notice before changes.
Expect 6-12 months of reserves depending on property count and loan amount. High-value markets like Fairfax see stricter reserve requirements.
You'd need to refinance into a new loan. Some lenders offer conversion options but charge hefty fees that rarely make financial sense.
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.