Question 1

What does the initial fixed period mean on an ARM?

Accepted Answer

The rate stays fixed for a set period — often 5 or 7 years. After that, it adjusts annually based on a market index.

Question 2

Can I use an ARM to buy a Big Bear vacation home?

Accepted Answer

Yes, but second-home ARMs have stricter reserve and down payment requirements. Expect at least 10% down.

Question 3

What are rate caps on an ARM?

Accepted Answer

Caps limit how much your rate can rise. A 2/2/5 cap means 2% at first adjustment, 2% per year after, 5% total lifetime.

Question 4

Is an ARM risky for a Big Bear rental property?

Accepted Answer

It depends on your hold period. If you plan to sell or refi within 5-7 years, the risk is manageable.

Question 5

Does SRK CAPITAL offer ARM loans for Big Bear properties?

Accepted Answer

Yes. SRK CAPITAL works with 200+ wholesale lenders and shops ARM programs specifically for mountain and resort properties.

Question 6

Can short-term rental income help me qualify for an ARM?

Accepted Answer

Usually not on a second-home ARM. Lenders typically require your own income to cover the payment. Ask us before assuming.

ARM Loans in Big Bear Lake — Lower Rates, Smarter Entry