Question 1

Who is a portfolio ARM best suited for in Novato?

Accepted Answer

Business owners, self-employed buyers, and high-net-worth borrowers with complex financials. Standard loan programs often can't capture their full financial picture.

Question 2

How does a portfolio ARM differ from a regular ARM?

Accepted Answer

The lender keeps it on their own books instead of selling it. That lets them set custom terms, flexible income docs, and non-standard structures.

Question 3

Are portfolio ARMs considered non-QM loans?

Accepted Answer

Yes. They don't follow Fannie Mae or Freddie Mac guidelines. Qualification rules are set entirely by the portfolio lender.

Question 4

What rate adjustment caps should I watch for?

Accepted Answer

Ask about the initial cap, periodic cap, and lifetime cap. These control how much your rate can move at each adjustment period.

Question 5

Can I use a portfolio ARM to buy a primary home in Novato?

Accepted Answer

Yes — unlike DSCR loans, portfolio ARMs can be used for primary residences. That makes them a broader tool for Marin County buyers.

Question 6

How many months of reserves do portfolio lenders typically require?

Accepted Answer

Requirements vary by lender, but 12 months of reserves is a common baseline. Strong reserves can offset other risk factors in your file.

Portfolio ARMs in Novato: Flexible Financing for Marin Buyers