Question 1

What makes a portfolio ARM different from a regular ARM?

Accepted Answer

The lender keeps it on their own books instead of selling it. That means they control the terms — more flexibility for borrowers who don't fit standard molds.

Question 2

How long is the initial fixed rate period?

Accepted Answer

Common structures are 5/1, 7/1, and 10/1. The first number is the fixed period in years. After that, the rate adjusts annually.

Question 3

Can I get a portfolio ARM with bank statement income?

Accepted Answer

Yes. Many portfolio ARM lenders accept bank statements in place of tax returns. This is one of the main reasons self-employed buyers in RSM use them.

Question 4

Are portfolio ARMs available for investment properties in Rancho Santa Margarita?

Accepted Answer

Yes, and some lenders blend portfolio ARM terms with investor-specific underwriting. Ask us which programs allow rental income to offset DTI.

Question 5

What are the rate caps on a portfolio ARM?

Accepted Answer

Caps vary by lender and program. Typical structures limit each annual adjustment to 2% and lifetime adjustments to 5-6% over the start rate.

Question 6

Is a portfolio ARM risky if rates keep rising?

Accepted Answer

Rate caps limit your exposure. If you plan to sell or refi before adjustments kick in, the risk is minimal — but plan for the adjustment scenario anyway.

Portfolio ARMs in Rancho Santa Margarita — Flexible Financing on Your Terms