Question 1

What is a portfolio ARM exactly?

Accepted Answer

It's an adjustable-rate mortgage a lender keeps on their own books. Because they don't sell it, they can set their own underwriting rules.

Question 2

How long does the initial rate stay fixed?

Accepted Answer

Most portfolio ARMs offer 3, 5, 7, or 10-year fixed periods. After that, the rate adjusts on a set schedule tied to an index.

Question 3

Can I use a portfolio ARM to buy an investment property in Chino?

Accepted Answer

Yes. Portfolio lenders often allow investment properties. Some combine ARM pricing with DSCR qualification for rental buyers.

Question 4

What happens if rates keep rising after my ARM adjusts?

Accepted Answer

Your cap structure limits how far the rate can move. Know your periodic and lifetime caps before you commit to any ARM product.

Question 5

Is a portfolio ARM harder to get than a conventional loan?

Accepted Answer

Not always harder — just different. Strong reserves and credit matter more. Income documentation rules are often more flexible.

Question 6

Are portfolio ARM rates higher than conforming ARM rates?

Accepted Answer

Sometimes slightly, but not always. The flexibility in qualification often justifies any small rate premium. Rates vary by borrower profile and market conditions.

Portfolio ARMs in Chino, CA — Flexible Financing on Your Terms