Question 1

What makes a portfolio ARM different from a regular ARM?

Accepted Answer

The lender keeps the loan on their own books instead of selling it. That means they set the terms — more flexibility for non-standard properties or borrowers.

Question 2

Can I use a portfolio ARM for a rural Mendocino property?

Accepted Answer

Yes — that's one of the main use cases. Portfolio lenders aren't bound by agency property rules that often disqualify rural or agricultural parcels.

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. Rates vary by borrower profile and market conditions.

Question 4

What credit score do I need?

Accepted Answer

Each lender sets its own floor. Many portfolio ARM programs start around 680, but some go lower with stronger compensating factors like large reserves.

Question 5

Is a portfolio ARM risky for Ukiah buyers?

Accepted Answer

It depends on your plan. If you're holding long-term with no exit strategy, fixed-rate is safer. A portfolio ARM rewards borrowers who plan ahead.

Question 6

Does SRK CAPITAL work with portfolio lenders in Northern California?

Accepted Answer

Yes. We have access to wholesale lenders who actively fund portfolio ARMs in rural California markets, including Mendocino County.

Portfolio ARMs in Ukiah, CA: Flexible Rates, Local Terms