Loading
Portfolio ARMs don't follow standard agency rules. Lenders write their own terms and keep the loan on their books.
Bankrate flagged rates at 6.19% this week as geopolitical pressure pushed markets higher. A portfolio ARM's initial rate can sit below that — which matters when you're buying in San Diego County.
Non-QM / Portfolio
Loan Type
3, 5, 7, or 10 Years
Fixed Period Options
Varies by Lender
Credit Flexibility
Bank Stmts Accepted
Income Docs
200+ Wholesale Lenders
Lender Network
These are non-QM loans. Lenders don't use the standard debt-to-income caps that agency loans require.
Self-employed borrowers, investors, and anyone with complex income can qualify. Expect to show 12-24 months of bank statements or asset documentation instead of W-2s.
Most banks don't advertise portfolio ARMs. You won't find them on rate comparison sites.
At SRK CAPITAL, we work with 200+ wholesale lenders — including portfolio shops that price these loans competitively for San Diego borrowers.
The best use case I see: a borrower who plans to sell or refinance within 5-7 years. Paying a fixed rate for 30 years when you'll be out in five is expensive.
Portfolio ARMs also work well for investors buying in Lemon Grove to rent out. The lower initial payment improves monthly cash flow from day one.
A conventional 30-year fixed locks your rate but costs more monthly upfront. A portfolio ARM gives you a lower rate now in exchange for future adjustment risk.
DSCR loans are a closer cousin — both are investor-friendly non-QM products. But DSCR qualifies on rental income only. A portfolio ARM uses full borrower financials.
Lemon Grove sits in the heart of San Diego County — close to employment hubs and in a county with strong long-term rental demand.
Investors buying here for rental income benefit from the lower initial payment a portfolio ARM provides. That gap between payment and rent widens your early cash flow margin.
The lender keeps this loan instead of selling it. That means they can set their own terms, accept non-standard income, and approve deals agencies won't touch.
Most portfolio ARMs offer 3, 5, 7, or 10-year fixed periods. After that, the rate adjusts on a set schedule defined in your loan documents.
Yes. Portfolio lenders typically accept 12-24 months of bank statements instead of tax returns. This is one of their main advantages over agency loans.
Your rate moves based on an index plus a margin. Rate caps limit how much it can move per adjustment and over the life of the loan.
They can be. The lower initial payment improves early cash flow. Just plan for the adjustment — either refinance, sell, or ensure the rent covers a higher rate.
Yes. Portfolio lenders price independently. Rates vary by borrower profile and market conditions, so comparing across wholesale lenders makes a real difference here.
Portfolio ARMs in Lemon Grove