Question 1

What makes Portfolio ARMs different from standard ARMs?

Accepted Answer

The lender keeps the loan rather than selling it. That means they write the rules — more flexibility on income, property type, and loan size.

Question 2

Can I use a Portfolio ARM to buy a second home in Carmel?

Accepted Answer

Yes. Portfolio lenders regularly fund second homes and vacation properties. Expect stricter reserve requirements for non-primary residences.

Question 3

How long is the fixed period on a Portfolio ARM?

Accepted Answer

Most run 5, 7, or 10 years before the first adjustment. The right term depends on how long you plan to hold the property.

Question 4

Do Portfolio ARMs work for self-employed borrowers?

Accepted Answer

Absolutely. Portfolio lenders often accept bank statements or asset depletion in place of tax returns. It's one of their biggest advantages.

Question 5

What credit score do I need for a Portfolio ARM in Monterey County?

Accepted Answer

Most portfolio lenders want at least a 680. Stronger credit unlocks better pricing and higher loan amounts.

Question 6

Are Portfolio ARMs available for investment properties in Carmel?

Accepted Answer

Yes, and they pair well with investor strategies that have a clear exit. Confirm the lender's policy on non-owner-occupied properties upfront.

Portfolio ARMs in Carmel By The Sea