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Portfolio ARMs in Sausalito
Sausalito's luxury waterfront market attracts buyers who don't fit conventional lending boxes. Portfolio ARMs let lenders write loans based on your actual financial picture, not just what Fannie Mae approves.
These loans stay on the lender's books instead of getting sold to investors. That means custom terms for complex income situations common among Marin County's tech executives and business owners.
We see portfolio ARMs most often on properties above conforming limits or for borrowers with substantial assets but non-traditional income streams. Sausalito's price point makes this loan type highly relevant.
Most portfolio ARM lenders want 20-30% down and credit scores above 680. You'll show reserves covering 6-12 months of payments, which high-net-worth buyers typically have anyway.
Income verification varies dramatically by lender. Some accept bank statements, others look at asset depletion, and a few will underwrite based on investment portfolio distributions.
The adjustable rate structure typically starts 5, 7, or 10 years fixed before adjusting. Rate caps limit how much your payment can increase at each adjustment and over the loan's life.
Portfolio ARM programs live at private banks, credit unions, and specialty lenders. Each institution has different risk tolerances and preferred borrower profiles.
We're shopping your scenario across 200+ wholesale lenders to find who's currently aggressive on portfolio products. Program availability shifts quarterly based on each lender's portfolio balance.
Some lenders want existing banking relationships while others focus purely on the deal itself. Terms vary wildly, which is exactly why broker access matters on these loans.
Portfolio ARMs work brilliantly for three Sausalito buyer types: tech executives with equity comp, retirees with investment income, and business owners showing lower tax returns than actual cash flow.
The ARM structure often prices better than fixed portfolio products since lenders carry less interest rate risk. If you plan to sell or refinance within 7-10 years anyway, you're paying for rate protection you won't use.
Watch the margin and index carefully. A low start rate means nothing if the margin is inflated. We've seen 2.25% margins and we've seen 4.5% margins on similar programs.
Bank statement loans offer another non-QM path but verify income through deposits rather than assets. DSCR loans work for investment properties using rental income, not your personal finances.
Traditional ARMs from Fannie Mae cost less but require W-2 income and full documentation. Portfolio ARMs fill the gap when you have the wealth but not the paperwork.
If you're putting down 30%+ with strong reserves, some portfolio lenders will beat conventional rates even with non-traditional income. That's the trade-off for keeping loans in-house.
Sausalito's waterfront condos and hillside homes often come with HOA complexities that portfolio lenders handle better than automated underwriting systems. Custom properties get custom underwriting.
Marin County's high property values mean many buyers need jumbo financing anyway. Portfolio lenders are already comfortable at these price points, making the non-QM aspect less of a hurdle.
The local market includes significant second-home buyers and pied-à-terre purchasers. Portfolio ARMs accommodate these use cases more readily than conforming products.
Property condition flexibility matters here too. Some Sausalito homes need work that conventional lenders won't finance. Portfolio lenders can structure around renovation plans.
Most have 2% caps per adjustment and 5-6% lifetime caps above your start rate. Read your specific loan docs carefully since portfolio lenders set their own cap structures.
Yes, portfolio lenders typically count 75% of rental income without the two-year landlord history conventional loans require. Your overall financial profile matters more than one income source.
Your rate adjusts based on an index plus margin, typically annually after that. You can refinance before adjustment or let it adjust if rates have dropped.
Some lenders prefer it but many don't require it. We work with lenders who write portfolio ARMs for new customers through broker channels.
Expect 30-45 days typically. Custom underwriting takes longer than automated systems, but experienced lenders who specialize in portfolio products move efficiently.
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.