Question 1

What makes a portfolio ARM different from a regular ARM?

Accepted Answer

The lender holds it instead of selling it. That means flexible guidelines, alternative income docs, and terms you won't find on agency loans.

Question 2

Can I use a portfolio ARM on an investment property in Buena Park?

Accepted Answer

Yes. Many portfolio lenders allow investment property use. Guidelines vary, so loan terms depend on your specific lender and profile.

Question 3

How long is the initial fixed period on a portfolio ARM?

Accepted Answer

Common structures are 5/1, 7/1, or 10/1. The first number is the fixed years before the rate adjusts annually.

Question 4

Are portfolio ARMs harder to qualify for than conventional ARMs?

Accepted Answer

Not necessarily. They're more flexible for complex income. But rates and terms vary, so comparisons depend on your full borrower profile.

Question 5

What happens when a portfolio ARM adjusts?

Accepted Answer

Your rate changes based on an index plus a margin. Most have adjustment caps that limit how much the rate can move at each change.

Question 6

Do portfolio ARMs require a large down payment in Orange County?

Accepted Answer

Requirements vary by lender. Many portfolio lenders require 20-25% down, especially for investment properties or non-standard income borrowers.

Portfolio ARMs in Buena Park, CA — Flexible Financing for Complex Borrowers