Question 1

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

Accepted Answer

Most lenders accept 620+ credit with compensating factors like 25% down or high reserves. Scores above 680 unlock better rates and lower down payments.

Question 2

How much higher are portfolio ARM rates compared to conventional?

Accepted Answer

Expect starting rates 0.75-1.5% above conventional ARMs. Your exact premium depends on credit, down payment, and income documentation strength.

Question 3

Can I use a portfolio ARM for a wine country investment property?

Accepted Answer

Yes, portfolio lenders approve investment properties including working vineyards and tasting rooms. DSCR loans often work better for pure rental investments though.

Question 4

How do adjustment caps work on portfolio ARMs?

Accepted Answer

Common structures are 2/2/5 — rates adjust max 2% per period, 5% lifetime. Some lenders offer 5/2/5 or other caps based on your profile.

Question 5

What if my income is seasonal from wine tourism?

Accepted Answer

Portfolio lenders in wine country expect seasonal patterns. They average your bank statements over 12-24 months to calculate stable income figures.

Question 6

Can I refinance out of a portfolio ARM later?

Accepted Answer

Yes, most borrowers refinance to conventional loans in 3-5 years once income documentation improves. Plan this strategy from the start.

Portfolio ARMs in Paso Robles: Flexible Financing for Complex Borrower Profiles