Question 1

What's the minimum down payment for a portfolio ARM in Larkspur?

Accepted Answer

Most lenders require 20% down for owner-occupied, 25-30% for investment properties. Higher loan amounts or complex income may push that to 25% even for primary residences.

Question 2

How does portfolio ARM underwriting differ from conventional loans?

Accepted Answer

Portfolio lenders evaluate the complete file rather than automated systems. They can approve deals with high debt ratios, unusual income, or property issues that would auto-decline conventionally.

Question 3

What happens when my portfolio ARM adjusts after the fixed period?

Accepted Answer

The rate adjusts based on an index plus margin, subject to periodic and lifetime caps. Most borrowers refinance before adjustment or have planned exit strategies by that point.

Question 4

Can I qualify with bank statements instead of tax returns?

Accepted Answer

Yes, most portfolio lenders offer bank statement programs as an option. They'll use 12-24 months of statements to calculate income, typically at 50% of deposits for self-employed borrowers.

Question 5

Do portfolio ARMs work for multi-unit properties in Larkspur?

Accepted Answer

Absolutely, especially for 2-4 unit buildings. Portfolio lenders can use rental income more liberally than agency guidelines allow, making qualification easier for investment properties.

Question 6

How quickly can a portfolio ARM close in Marin County?

Accepted Answer

Private portfolio lenders close in 15-21 days. Regional banks take 30-45 days but offer better rates, so timeline versus pricing becomes the tradeoff.

Portfolio ARMs in Larkspur: Flexible Financing for Marin's Unique Properties