Question 1

What happens when my rate adjusts on a portfolio ARM?

Accepted Answer

Your rate changes based on an index plus a margin, typically once per year. Annual caps limit increases to 2%, and lifetime caps prevent runaway payments.

Question 2

Can I qualify with rental income from a Sand City property?

Accepted Answer

Portfolio lenders count projected rental income more liberally than agency loans. You don't need two years of landlord history like Fannie Mae requires.

Question 3

Why would a lender keep this loan instead of selling it?

Accepted Answer

They make more profit holding it long-term and can approve borrowers outside agency guidelines. You get flexibility, they get higher yields.

Question 4

How do cryptocurrency assets help me qualify now?

Accepted Answer

Select non-QM lenders verify your crypto holdings and count them as reserves or income. This helps borrowers with digital assets but non-traditional W-2 income.

Question 5

Should I worry about rate increases if the Fed cuts rates?

Accepted Answer

ARM adjustments follow an index like SOFR, not the Fed rate directly. Fed cuts improve the broader rate environment but your margin stays constant.

Portfolio ARMs in Sand City: Flexible Financing Beyond Standard Guidelines