Question 1

What makes a portfolio ARM different from a standard ARM?

Accepted Answer

The lender keeps the loan instead of selling it. That means more flexible terms and looser income documentation rules.

Question 2

Are portfolio ARMs considered non-QM loans?

Accepted Answer

Yes. They don't follow agency guidelines. Lenders set their own standards, which helps non-traditional borrowers qualify.

Question 3

How long is the fixed-rate period on a portfolio ARM?

Accepted Answer

Usually 3, 5, or 7 years. After that, the rate adjusts annually based on an index plus a lender margin.

Question 4

Who uses portfolio ARMs in Yorba Linda?

Accepted Answer

Mostly business owners, investors, and high-income borrowers who don't fit a standard W-2 qualification box.

Question 5

What happens when the ARM adjusts?

Accepted Answer

Your rate moves based on the index plus margin. Rate caps limit how much it can jump — per adjustment and over the loan's life.

Question 6

Can I refinance before the rate adjusts?

Accepted Answer

Yes, and many borrowers in Yorba Linda do exactly that. Plan your hold period before you commit to the initial term.

Portfolio ARMs in Yorba Linda: Flexible Rates, Real Buying Power