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San Diego is expensive. Buyers here often need loan structures that conventional products can't deliver.
Portfolio ARMs give lenders room to bend their own rules. That flexibility shows up in rate, term, and qualifying criteria.
680+
Typical Min Credit Score
5, 7, or 10 Years
Common Fixed Periods
Non-QM
Loan Classification
Not Sold — Lender Held
Secondary Market
Portfolio ARMs in San Diego
These are non-QM loans. Standard debt-to-income rules don't always apply.
Lenders set their own credit floors. Most want a 680+ score, but some go lower with strong assets or a large down payment.
Local decision guide
Use this guide to connect portfolio arms eligibility, lender expectations, and local market factors before comparing payment options in San Diego.
San Diego is expensive. Buyers here often need loan structures that conventional products can't deliver.
Portfolio ARMs give lenders room to bend their own rules. That flexibility shows up in rate, term, and qualifying criteria.
These are non-QM loans. Standard debt-to-income rules don't always apply.
Most big banks don't offer portfolio ARMs to the public. You find them through brokers or direct relationships with portfolio lenders.
HousingWire flagged ARM demand shifting as fixed rates climbed to 6.57%. Portfolio ARM lenders are moving fast to fill that gap.
I see these loans work best for buyers who plan to sell or refinance within 5–7 years.
The initial rate is meaningfully lower than a 30-year fixed. On a San Diego-sized loan, that gap matters every month.
A conventional ARM gets sold to Fannie or Freddie. A portfolio ARM stays with the lender, so underwriting is more open.
DSCR loans work for rental income. Bank Statement loans work for self-employed income. Portfolio ARMs work for borrowers who need flexible terms on their primary or investment purchase.
San Diego loan balances run high. A lower ARM start rate can mean several hundred dollars less per month at these price points.
Coastal properties and non-warrantable condos often can't get conventional financing. Portfolio lenders handle these regularly.
The lender keeps it on their books instead of selling it. That means they write their own rules on qualifying criteria and terms.
Yes. Many portfolio ARM lenders work with investors. DSCR underwriting is sometimes combined with ARM pricing on these deals.
It depends on the lender's program. Common structures are 5/1, 7/1, or 10/1 — fixed for that period, then adjusting annually.
Yes. These loans don't follow agency guidelines. Approval standards and terms vary by lender.
Most lenders want 680 or higher. Strong reserves or a larger down payment can sometimes offset a lower score.
Buyers planning to stay long-term. If you're keeping the home 15–20 years, a fixed rate removes adjustment risk entirely.