Question 1

What makes a portfolio ARM different from a standard ARM?

Accepted Answer

The lender keeps a portfolio ARM on its own books instead of selling it. That means more flexible terms and looser documentation rules.

Question 2

Can I use short-term rental income to qualify?

Accepted Answer

Some portfolio lenders allow it. Guidelines vary — ask your broker which lenders accept STR income for Monterey properties.

Question 3

What credit score do I need for a portfolio ARM?

Accepted Answer

Most portfolio lenders want at least 620. Stronger credit gets better rate pricing. Rates vary by borrower profile and market conditions.

Question 4

How long is the fixed period on a portfolio ARM?

Accepted Answer

Common options are 5/1, 7/1, and 10/1. The first number is the fixed-rate period in years before it adjusts.

Question 5

Is a portfolio ARM a good fit for a vacation home in Monterey?

Accepted Answer

It can be. Portfolio lenders often have more lenient second-home rules than conventional programs. Terms depend on the lender.

Portfolio ARMs in Monterey, CA — Flexible Financing for Complex Buyers