Question 1

How much higher are portfolio ARM rates compared to conventional loans?

Accepted Answer

Expect rates 0.75-1.5% above agency programs as of February 2026. The premium pays for flexible underwriting and the lender's retained risk. Rates vary by borrower profile and market conditions.

Question 2

What credit score do I need for a portfolio ARM in Atascadero?

Accepted Answer

Most lenders want 620 or higher. Some accept lower scores with larger down payments or compensating factors like strong assets. Each portfolio lender sets their own minimums.

Question 3

Can I use a portfolio ARM for an investment property?

Accepted Answer

Yes, but DSCR loans often work better for pure rentals. Portfolio ARMs shine for primary residences or unique situations that fall outside standard investor loan guidelines.

Question 4

How long is the fixed rate period on a portfolio ARM?

Accepted Answer

Common options are 3, 5, or 7 years fixed before annual adjustments begin. Longer fixed periods cost slightly more but provide rate stability while you execute your exit strategy.

Question 5

Do portfolio ARMs work for homes that need repairs?

Accepted Answer

Many portfolio lenders fund properties in less-than-perfect condition. They're more flexible than FHA or conventional loans that require specific repairs before closing.

Portfolio ARMs in Atascadero: Flexible Financing for Non-Traditional Borrowers