Loading
HousingWire flagged a 10.4% drop in mortgage applications as the 30-year fixed hit 6.57%. ARM demand is shifting — and Portfolio ARMs are worth a hard look right now.
Portfolio ARMs aren't sold to Fannie or Freddie. The lender keeps the loan, so they set their own rules. That flexibility matters in a market like San Bernardino.
Adjustable (ARM)
Rate Type
5, 7, or 10 years
Fixed Period
Varies (580–660+)
Min Credit Score
Non-QM
Loan Classification
Typically 10–25%
Down Payment
Not sold — lender held
Secondary Market
These are non-QM loans. Lenders don't follow standard agency guidelines. Credit, income, and asset requirements vary by lender — sometimes significantly.
Some lenders approve with 580 credit. Others want 660+. Down payments typically run 10–25%. Rates vary by borrower profile and market conditions.
Most banks don't offer Portfolio ARMs on their rate sheets. You find them through brokers with access to specialty and portfolio lenders.
SRK CAPITAL works with 200+ wholesale lenders. Several hold Portfolio ARMs in-house — meaning real flexibility on terms, not just marketing language.
Portfolio ARMs work best when you have a short hold timeline. If you're buying in San Bernardino and plan to sell or refi in 5–7 years, a fixed rate costs you.
Investors use these constantly. A lower initial rate improves cash flow on day one. That matters more than where rates go in year eight.
A conventional ARM follows agency rules. A Portfolio ARM doesn't. That means more room on income docs, property type, and loan structure.
DSCR loans are similar for investors — but Portfolio ARMs can work for owner-occupants too. Bank Statement loans solve income. Portfolio ARMs solve rate structure.
San Bernardino has a strong investor and landlord base. Portfolio ARMs fit that profile — lower entry cost, flexible underwriting, held outside secondary markets.
The Inland Empire sees active fix-and-hold activity. A Portfolio ARM gives investors rate flexibility without agency restrictions on property condition or entity ownership.
The lender keeps the loan instead of selling it. That means they write their own rules on credit, income, and property type.
Yes. Many portfolio lenders allow investment properties. Some allow LLC or entity ownership, which agencies typically don't.
It depends on the lender. Some go down to 580. Others want 660 or higher. SRK CAPITAL finds the right lender for your score.
Common structures are 5/1, 7/1, or 10/1 ARMs. The first number is years at the fixed start rate before it adjusts.
Yes. They don't follow Fannie or Freddie guidelines. That's what makes them flexible — and why you won't find them at every lender.
Often yes. Portfolio lenders can use bank statements or asset depletion. Standard W-2 income docs aren't always required.
Portfolio ARMs in San Bernardino