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Portfolio ARMs in Dos Palos
Dos Palos operates outside the spotlight of Merced County's larger markets. That makes portfolio ARMs unusually relevant here—lenders keeping loans in-house care more about the property's cash flow than your W-2.
Agricultural investors and self-employed borrowers dominate this town. Portfolio ARMs let them finance without conforming to Fannie Mae's rigid employment verification rules.
Most portfolio ARM lenders want 20-25% down and credit scores around 660. They'll waive tax return requirements if your bank statements show consistent deposits.
You're refinancing rental property with irregular income? That's the exact scenario these loans solve. Lenders care about rental income, not your last two April 15ths.
Only about 15 lenders in our network offer true portfolio ARMs. They're regional banks and private lenders who keep every loan they fund—no selling to Wall Street.
Rate adjustments vary wildly between lenders. Some cap at 2% per year, others at 5%. The first adjustment period ranges from six months to five years depending on who's holding the note.
I send most Dos Palos ag borrowers to portfolio ARMs when they're buying multi-unit properties or mixed-use buildings. Conventional lenders choke on farms with rental units attached.
The biggest mistake? Assuming all ARMs work the same. Portfolio products can have balloon payments, interest-only periods, or prepayment penalties that standard ARMs never carry.
DSCR loans beat portfolio ARMs when you want predictable payments. Bank statement loans work better if you need fixed rates with flexible income documentation.
Portfolio ARMs win when you need the lowest possible start rate and plan to refinance within three years. The adjustable structure keeps initial payments 1-2% lower than fixed alternatives.
Dos Palos property values move with almond and cotton prices. Portfolio lenders here understand that seasonal cash flow—most won't panic if rental income dips in January.
The limited housing stock means appraisals take longer. Portfolio lenders give you 45-60 day locks instead of the standard 30, which matters when comparables are scattered across the county.
Most adjust annually after an initial fixed period of 3-7 years. A few lenders offer six-month adjustments but charge higher start rates.
Yes, if you show 12-24 months of operating statements. Portfolio lenders care about property cash flow more than personal tax returns.
You'll pay whatever the new rate calculates to, capped by your loan's adjustment limits. Most portfolios cap at 2-5% per adjustment period.
They can, but most lenders reserve these for investment properties. You'll find better terms on conventional ARMs for primary residences.
Local banks profit from interest over 15-30 years. They're betting your property performs well enough to justify the risk of holding the note.
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.