Question 1

What makes a portfolio ARM different from a regular ARM?

Accepted Answer

The lender keeps it on their own books instead of selling it. That gives them flexibility to approve deals agencies wouldn't touch.

Question 2

Are portfolio ARMs harder to qualify for in Marin?

Accepted Answer

Not harder — different. Lenders focus on assets and overall financial strength. Complex income profiles often qualify more easily than with conventional loans.

Question 3

How long is the initial fixed rate period?

Accepted Answer

It varies by lender — common structures are 5, 7, or 10 years fixed before the rate adjusts. Your timeline and exit strategy should drive that choice.

Question 4

Do portfolio ARMs have rate caps?

Accepted Answer

Most do, but terms differ by lender. Ask specifically about periodic caps and lifetime caps before committing to any ARM structure.

Question 5

Is this a good fit for Fairfax investment properties?

Accepted Answer

Often yes. Investors planning a shorter hold benefit from the lower initial rate. Pair it with a DSCR analysis to confirm the cash flow works.

Portfolio ARMs in Fairfax, Marin County