Question 1

What makes a portfolio ARM different from a regular ARM?

Accepted Answer

The lender keeps the loan instead of selling it. That means they set their own guidelines, not Fannie Mae's.

Question 2

Can I use a portfolio ARM to buy in Placentia as a primary residence?

Accepted Answer

Yes. Unlike DSCR loans, portfolio ARMs can cover primary homes. Terms depend on the specific lender.

Question 3

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

Accepted Answer

Typically 3, 5, 7, or 10 years. After that, the rate adjusts based on an index plus a margin.

Question 4

Do I need tax returns to qualify?

Accepted Answer

Not always. Many portfolio ARM lenders accept bank statements or asset depletion instead of tax returns.

Question 5

What credit score do I need for a portfolio ARM in Orange County?

Accepted Answer

Requirements vary by lender. Some go as low as 620, but stronger scores get better initial rates. Rates vary by borrower profile and market conditions.

Question 6

Is a portfolio ARM a good fit if I plan to sell within five years?

Accepted Answer

It often is. You capture the lower initial rate and exit before adjustment kicks in. Run the numbers with your broker first.

Portfolio ARMs in Placentia: Flexible Rates, Lender-Held Terms