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Daly City's proximity to San Francisco creates a borrower pool that traditional lenders struggle to serve. Self-employed professionals, real estate investors, and foreign nationals need financing that looks beyond W-2s and standard debt ratios.
Portfolio ARMs stay on a lender's books instead of getting sold to Fannie Mae or Freddie Mac. This structure lets lenders approve deals that conventional underwriting would reject, making them a fit for San Mateo County's diverse buyer profile.
Portfolio ARMs in Daly City
Most portfolio ARM lenders want 20% down and credit scores above 680. They'll accept bank statement income, asset depletion, or DSCR for rental properties instead of tax returns.
Unlike agency loans, each lender sets their own rules. One might cap loan amounts at $3 million while another goes higher. Some require six months reserves, others want twelve.
Local decision guide
Use this guide to connect portfolio arms eligibility, lender expectations, and local market factors before comparing payment options in Daly City.
Daly City's proximity to San Francisco creates a borrower pool that traditional lenders struggle to serve. Self-employed professionals, real estate investors, and foreign nationals need financing that looks beyond W-2s and standard debt ratios.
Portfolio ARMs stay on a lender's books instead of getting sold to Fannie Mae or Freddie Mac. This structure lets lenders approve deals that conventional underwriting would reject, making them a fit for San Mateo County's diverse buyer profile.
Most portfolio ARM lenders want 20% down and credit scores above 680. They'll accept bank statement income, asset depletion, or DSCR for rental properties instead of tax returns.
Portfolio ARM lenders are regional banks, credit unions, and private institutions. They don't advertise rates publicly because pricing depends on the full borrower profile.
Shopping these loans requires a broker who knows which lenders handle specific scenarios. One lender might specialize in foreign nationals while another focuses on real estate investors with multiple properties.
I use portfolio ARMs when a borrower has strong assets but income that doesn't fit traditional documentation. A tech consultant showing $40k monthly bank deposits but minimal tax liability gets approved where conventional lenders would decline.
The rate adjustment matters less than most borrowers think. Many refinance within three to five years anyway, especially in Daly City where property values support multiple financing options as equity builds.
Bank statement loans compete directly with portfolio ARMs for self-employed borrowers. The difference: bank statement loans have more standardized pricing while portfolio ARMs offer deeper customization on structure and terms.
DSCR loans work for pure investment properties, but portfolio ARMs handle primary residences and scenarios where rental income is part of a broader qualification story.
Daly City condos and townhomes dominate the housing stock, which some portfolio lenders restrict. They prefer single-family detached properties or limit loan amounts on attached housing.
San Mateo County's high property values mean even borrowers with strong income need creative financing to hit purchase price targets. Portfolio ARMs let lenders approve larger loans by using asset-based qualification methods.
Expect 0.5% to 1.5% higher than agency rates as of February 2026. The premium pays for underwriting flexibility that conventional loans can't offer.
Most adjust annually after an initial fixed period of one to seven years. Caps limit how much rates can increase per adjustment and over the loan life.
Yes, portfolio lenders use bank statements or asset depletion instead. Tax losses don't disqualify you the way they would with conventional underwriting.
Not typically. Most require 20% down minimum, which eliminates PMI regardless of loan type.
Two to four weeks once documents are complete. Manual underwriting takes longer than automated systems but offers more approval flexibility.