Question 1

What makes a portfolio ARM different from a regular ARM?

Accepted Answer

The lender keeps it on their books instead of selling it. That means they set the terms and can approve borrowers agency lenders won't touch.

Question 2

Is a portfolio ARM a non-QM loan?

Accepted Answer

Yes. It doesn't follow Fannie Mae or Freddie Mac rules. That's why the flexibility exists — and why you need a broker to find the right lender.

Question 3

Who is a portfolio ARM best suited for in Brea?

Accepted Answer

Self-employed buyers, investors, and anyone with complex income who plans to sell or refinance before the rate adjusts.

Question 4

How long is the fixed period on a portfolio ARM?

Accepted Answer

It varies by lender — 3, 5, 7, or 10 years are common. After that, the rate adjusts based on an index plus a margin.

Question 5

What are rate caps and why do they matter?

Accepted Answer

Caps limit how much your rate can increase per adjustment and over the loan's life. They protect against runaway payments after the fixed period ends.

Question 6

Can I use a portfolio ARM to buy an investment property in Brea?

Accepted Answer

Yes. Many portfolio lenders allow non-owner-occupied properties. Terms vary, so comparing lenders through a broker is essential.

Portfolio ARMs in Brea, CA — Flexible Rates, Real Approvals