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Portfolio ARMs in San Rafael
San Rafael's diverse property types—from downtown condos to hillside estates—often fall outside standard lending boxes. Portfolio ARMs give lenders flexibility to approve deals based on the full financial picture, not just automated underwriting scores.
Marin County borrowers typically use these loans for unique properties, complex income situations, or jumbo amounts where conventional ARMs don't fit. The portfolio structure means faster decisions and more negotiable terms than agency-backed products.
Most portfolio ARM lenders in Marin want 20-30% down and credit scores above 660. Income documentation varies widely—some accept bank statements, others require full tax returns, and a few will approve based purely on asset reserves.
The adjustable rate structure usually starts with a 3, 5, or 7-year fixed period before annual adjustments. Lenders cap how much rates can move per adjustment and over the loan life, but those caps vary significantly by portfolio.
Portfolio ARM availability in San Rafael comes from regional banks, credit unions, and specialized non-QM lenders. Each institution sets its own underwriting guidelines since they're keeping the loan on their books rather than selling it.
Rate spreads between lenders can hit 0.75% or more on identical scenarios. One lender might price aggressively for asset-based approvals while another focuses on self-employed borrowers with two years of tax returns.
Portfolio ARMs work best when borrowers have substantial liquidity but income that doesn't document cleanly. I place these loans for tech executives with equity comp, real estate investors managing multiple properties, and business owners reinvesting profits instead of taking W-2 income.
The ARM structure typically saves 0.5-1% versus fixed-rate portfolio products upfront. That matters on a $2M San Rafael purchase—we're talking $10-20K annual savings during the fixed period. Just know the adjustment caps before committing.
Conventional ARMs cost less but require full income documentation and property conformity. Portfolio ARMs cost more in rate but approve scenarios that would get instant denials elsewhere—foreign nationals, recent credit events, or properties needing significant work.
Bank statement loans offer another path for self-employed borrowers, though they're typically fixed-rate products. DSCR loans work better for pure investment properties where you don't want personal income considered at all.
San Rafael's mix of older housing stock and non-warrantable condo buildings makes portfolio lending essential. Many downtown units don't meet Fannie Mae condo certification requirements, forcing borrowers into portfolio products regardless of their financial profile.
Marin's high property values push many purchases into jumbo territory where portfolio lenders compete aggressively. The county's concentration of high-net-worth professionals creates strong demand for asset-based underwriting that looks beyond tax returns.
Most portfolio ARMs cap annual adjustments at 2% and lifetime increases at 5-6% above the start rate. Review your specific loan docs—these caps aren't standardized across lenders.
Yes, many portfolio lenders approve with one year of self-employment if you have strong reserves and prior work history. Asset-based options require no income documentation at all.
Absolutely—we see 0.5-1% rate spreads on identical scenarios depending on each lender's current portfolio appetite. Shopping across multiple institutions is essential.
Most lenders start at 660, though some go to 620 with larger down payments. Scores above 720 unlock the best rate tiers and lowest reserve requirements.
They work well for 1-4 unit investments with complex income situations. Pure rental properties often get better terms through DSCR loans that ignore personal income entirely.
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.