Question 1

What credit score do I need for a portfolio ARM in Aliso Viejo?

Accepted Answer

Most lenders require 680 minimum, but 720+ gets better rates. Some portfolio lenders approve down to 640 with larger down payments and compensating factors.

Question 2

How much can I borrow with a portfolio ARM?

Accepted Answer

Loan amounts typically start at $1 million and go up to $5 million or more. Your actual limit depends on income, assets, and the specific lender's portfolio appetite.

Question 3

Can self-employed borrowers qualify for portfolio ARMs?

Accepted Answer

Yes, self-employed income works well with portfolio ARMs. Most lenders accept 12-24 months of bank statements instead of tax returns for income verification.

Question 4

How do portfolio ARM rates compare to fixed jumbo loans?

Accepted Answer

Portfolio ARMs typically start 0.5-1% lower than fixed jumbo rates. The tradeoff is rate adjustment risk after the initial fixed period ends.

Question 5

What happens when my portfolio ARM adjusts?

Accepted Answer

After the fixed period, your rate adjusts based on an index plus margin. Most loans have caps limiting how much rates can increase per adjustment and over the loan life.

Question 6

Are portfolio ARMs available for investment properties in Aliso Viejo?

Accepted Answer

Yes, many portfolio lenders finance investment properties. DSCR loans may offer better terms if rental income covers the mortgage payment.

Portfolio ARMs in Aliso Viejo: Flexible Financing Beyond Conventional Limits