Question 1

How do portfolio ARM rates compare to conventional loans?

Accepted Answer

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.

Question 2

What happens when the rate adjusts on a portfolio ARM?

Accepted Answer

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.

Question 3

Can I qualify with recent tax returns showing a loss?

Accepted Answer

Yes, portfolio lenders use bank statements or asset depletion instead. Tax losses don't disqualify you the way they would with conventional underwriting.

Question 4

Do portfolio ARM lenders require private mortgage insurance?

Accepted Answer

Not typically. Most require 20% down minimum, which eliminates PMI regardless of loan type.

Question 5

How long does portfolio ARM approval take in Daly City?

Accepted Answer

Two to four weeks once documents are complete. Manual underwriting takes longer than automated systems but offers more approval flexibility.

Portfolio ARMs in Daly City: Flexible Financing for Complex Borrowers