Question 1

How often do portfolio ARM rates adjust in Colma loans?

Accepted Answer

Most adjust annually after an initial 3, 5, or 7-year fixed period. The adjustment schedule is set at closing and based on an index plus a margin outlined in your loan documents.

Question 2

Can I refinance a portfolio ARM before the first adjustment?

Accepted Answer

Yes, but refinance eligibility depends on your financial profile at that time. If income or credit has improved, you may qualify for better conventional or non-QM fixed rates.

Question 3

What income documentation do Colma portfolio ARM lenders accept?

Accepted Answer

Most accept 12-24 months of bank statements showing consistent deposits. Some also consider 1099s, rental income, or asset-based qualification depending on the lender.

Question 4

Do portfolio ARMs work for investment properties in Colma?

Accepted Answer

Yes, though lenders typically require larger down payments for non-owner occupied properties. DSCR loans often price more competitively for investment deals with strong rental income.

Question 5

What happens if rates spike at my first adjustment?

Accepted Answer

Your rate can only increase by the cap amount specified in your loan—typically 2-5% at first adjustment. The new rate applies for the next adjustment period, usually one year.

Portfolio ARMs in Colma: Flexible Financing for Complex Scenarios