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 can set their own rules on income, property type, and credit.

Question 2

Is a Portfolio ARM risky for a San Clemente purchase?

Accepted Answer

Rate caps limit your exposure. The real risk is not having an exit plan before the fixed period ends.

Question 3

Can I use a Portfolio ARM for an investment property in San Clemente?

Accepted Answer

Yes. Portfolio lenders regularly approve investment properties where conventional lenders would decline. Reserves and credit profile drive approval.

Question 4

How does the rate compare to a 30-year fixed?

Accepted Answer

The initial rate is usually lower. The spread versus fixed rates shifts with market conditions. Rates vary by borrower profile and market conditions.

Question 5

What loan amounts are available?

Accepted Answer

Portfolio ARMs can go well above conforming limits. Loan amounts depend on lender appetite and your overall financial profile.

Question 6

Do I need to show tax returns to qualify?

Accepted Answer

Not always. Some Portfolio ARM programs accept bank statements or asset depletion in place of tax returns. It depends on the lender.

Portfolio ARMs in San Clemente: Flexible Financing for a Premium Market