Question 1

How much do portfolio ARM rates differ from conventional ARMs in Palm Desert?

Accepted Answer

Expect 0.5-1.5% higher start rates than conventional ARMs. The flexibility and approval leniency justify the premium. Rates vary by borrower profile and market conditions.

Question 2

Can I get a portfolio ARM for a Palm Desert vacation rental property?

Accepted Answer

Yes, that's a common use case. Portfolio lenders can underwrite projected rental income that conventional loans won't accept. Expect 25-30% down for vacation rentals.

Question 3

What adjustment caps should I expect on a portfolio ARM?

Accepted Answer

Most have 2/2/5 caps, but some portfolio products go higher. Always verify the periodic and lifetime caps before committing. Higher caps mean more payment uncertainty.

Question 4

Do portfolio ARM lenders require property inspections in Palm Desert?

Accepted Answer

Most require full appraisals and may want additional inspections for older desert properties. Pool, HVAC, and roof condition matter more when the lender keeps the loan.

Question 5

Can I refinance a portfolio ARM into a conventional loan later?

Accepted Answer

Yes, if your income or property situation changes. Many borrowers use portfolio ARMs as bridge financing until they qualify for conventional terms with better rates.

Portfolio ARMs in Palm Desert: Flexible Financing for Complex Properties and Income