Loading
Adjustable Rate Mortgages (ARMs) in San Juan Bautista
San Juan Bautista buyers often choose ARMs when they expect to move within 5-7 years. The lower initial rate lets you qualify for more house in this small market.
Historic district properties and rural parcels dominate here. An ARM works if you're testing the area or planning to upgrade once you know the community fits.
Most lenders want 620 credit for ARMs, though better rates start at 680. You'll need standard income docs and 3-5% down for conventional ARMs.
Jumbo ARMs require 10-20% down since San Benito County prices can push past conforming limits. Lenders stress-test you at the fully indexed rate, not just the start rate.
Big banks offer basic 5/1 and 7/1 ARMs. Credit unions sometimes beat their rates by 0.25-0.375% if you're local.
Portfolio lenders give you more options on rural properties that conforming ARM guidelines reject. We compare 50+ ARM products to find the best combination of start rate and caps.
Most San Juan Bautista buyers I work with sell before the first adjustment. They use the ARM savings for renovations or to build equity faster.
Watch the caps closely. A 2/2/5 structure means 2% max increase at first adjustment, 2% per adjustment after, 5% lifetime. That matters if you stay past the fixed period.
A 7/1 ARM typically starts 0.50-0.75% below a 30-year fixed. On a $600K loan, that's $200-300 monthly savings for seven years.
If you're certain you'll stay 10+ years, a fixed mortgage eliminates rate risk. If you'll move or refinance within seven years, you're paying extra for protection you won't use.
San Juan Bautista's proximity to Hollister and Gilroy means many buyers relocate for work after a few years. That migration pattern favors ARMs over fixed loans.
Older homes near the Mission often need updating. ARM savings give you cash flow for repairs without draining reserves that lenders require anyway.
Your rate changes based on an index plus a margin, subject to caps. Most borrowers refinance or sell before the first adjustment hits.
Yes, most people refinance in years 4-6 of a 7/1 ARM. You'll need equity and qualifying income like any refi.
Some lenders restrict ARMs on acreage or unique properties. Portfolio lenders give you more flexibility on rural land.
Typically 0.50-0.75% lower at start. Exact spreads change weekly based on market conditions and your credit profile.
620 minimum for most programs. You'll see better rates and terms starting at 680 credit score.
Mortgage financing for independent contractors and freelancers who earn 1099 income instead of traditional W-2 wages.
Mortgage programs that allow borrowers to qualify based on liquid assets rather than traditional employment income.
Non-QM loans that use 12 to 24 months of bank statements to verify income for self-employed borrowers.
Short-term financing that bridges the gap between buying a new property and selling an existing one.
Debt Service Coverage Ratio loans that qualify investors based on a rental property's income rather than personal income.
Mortgage programs designed for non-US citizens and non-permanent residents who want to purchase property in the United States.
Asset-based short-term loans primarily used by real estate investors for property acquisition and renovation projects.
Mortgages that allow borrowers to pay only the interest for an initial period, resulting in lower monthly payments upfront.
Financing solutions tailored for real estate investors purchasing rental properties, fix-and-flip projects, or investment portfolios.
Home loans for borrowers who have an Individual Taxpayer Identification Number instead of a Social Security number.
Adjustable rate mortgages held in a lender's portfolio rather than sold on the secondary market, offering more flexible terms.
Non-QM mortgages that use a CPA-prepared profit and loss statement to verify income for self-employed borrowers.
Specialized mortgage programs designed to support homeownership in underserved communities with flexible qualification criteria.
Mortgages that meet the guidelines and loan limits set by Fannie Mae and Freddie Mac for secondary market purchase.
Financing for building a new home or making major renovations, typically converting to a permanent mortgage upon completion.
Traditional mortgage financing not backed by a government agency, offering flexible terms and competitive rates for qualified borrowers.
Innovative loan products that leverage projected home equity growth to provide favorable financing terms.
Government-insured mortgages from the Federal Housing Administration with low down payments and flexible credit requirements.
A revolving line of credit secured by your home equity that allows you to borrow funds as needed during a draw period.
A fixed-rate second mortgage that provides a lump sum of cash by borrowing against the equity built in your home.
Mortgages that exceed the conforming loan limits set by the FHFA, designed for financing high-value luxury properties.
Loans for homeowners aged 62 and older that convert home equity into cash without requiring monthly mortgage payments.
Government-backed zero down payment mortgages for eligible rural and suburban homebuyers who meet income limits.
Government-guaranteed mortgages for eligible veterans, active-duty service members, and surviving spouses with zero down payment.