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Fixed rates above 6.5% are pushing buyers toward alternatives. Portfolio ARMs are getting a hard look right now.
HousingWire just flagged a 10.4% weekly drop in mortgage applications as the 30-year fixed hit 6.57%. ARM demand shifted as a result — and portfolio ARMs sit right at the center of that shift.
Fontana buyers who plan to sell or refinance within 5-7 years often overpay using a 30-year fixed. A portfolio ARM can cut that cost significantly.
620+ (varies by lender)
Min Credit Score
5, 7, or 10 years
Initial Fixed Period
Bank stmts accepted
Income Docs
Non-QM / Portfolio
Loan Type
Often 1-2% lower
Rate vs 30-Yr Fixed
Portfolio ARMs in Fontana
Portfolio ARMs are non-QM loans. Lenders hold them in-house instead of selling them on the secondary market.
That means underwriting rules are set by the lender, not Fannie or Freddie. Credit, income, and asset requirements vary widely.
Most portfolio ARM lenders want 620+ credit and 12-24 months of reserves. Some accept bank statements instead of tax returns.
Local decision guide
Use this guide to connect portfolio arms eligibility, lender expectations, and local market factors before comparing payment options in Fontana.
Fixed rates above 6.5% are pushing buyers toward alternatives. Portfolio ARMs are getting a hard look right now.
HousingWire just flagged a 10.4% weekly drop in mortgage applications as the 30-year fixed hit 6.57%. ARM demand shifted as a result — and portfolio ARMs sit right at the center of that shift.
Fontana buyers who plan to sell or refinance within 5-7 years often overpay using a 30-year fixed. A portfolio ARM can cut that cost significantly.
You won't find portfolio ARMs at every bank. Most retail lenders don't offer them at all.
SRK CAPITAL works with 200+ wholesale lenders. Several specialize in portfolio products built for self-employed borrowers, investors, and non-traditional income situations.
Rate caps and adjustment periods differ by lender. Shopping matters more here than with conventional loans.
The initial rate on a portfolio ARM can run 1-2 points below a 30-year fixed. That gap adds up fast on a Fontana purchase.
Watch the adjustment caps. A 2/1/5 cap means the rate can jump 2% at first adjustment, 1% annually after, and 5% lifetime. Know your worst-case payment before you sign.
Borrowers who refinance every 5-7 years rarely hit the adjustment period. The initial fixed window is the whole game for them.
A conventional ARM gets sold to Fannie Mae. A portfolio ARM stays with the lender. That difference unlocks underwriting flexibility.
DSCR loans are better for pure rental investors. Bank statement loans are better for self-employed borrowers who want a fixed rate. Portfolio ARMs hit a sweet spot for borrowers who want flexible income docs and a lower starting rate.
If you qualify for conventional, compare both. If you don't, a portfolio ARM may be your clearest path to approval.
Fontana sits in San Bernardino County — one of the Inland Empire's fastest-moving markets. Buyers here tend to move up or relocate within 5-10 years.
That turnover pattern fits portfolio ARMs well. You get the lower initial rate and exit before the adjustment hits.
Fontana also attracts investors and self-employed borrowers priced out of LA County. Portfolio ARMs are built for that profile.
The lender keeps it instead of selling it. That means they write their own rules on income, credit, and documentation.
Many portfolio lenders accept 12-24 months of bank statements. It depends on the lender — not all do.
Common terms are 5, 7, or 10 years fixed before the rate adjusts. The lender sets the terms.
Adjustment caps limit how much it can move. Know your cap structure — typically 2% at first adjustment, 5% lifetime max.
It can be. Investors buying and repositioning within 5-7 years often benefit from the lower initial rate.
Yes. SRK CAPITAL works with multiple wholesale lenders offering portfolio ARMs in San Bernardino County.