Question 1

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

Accepted Answer

Most lenders require 680 minimum. Some go to 660 if down payment exceeds 25% and reserves cover 12+ months.

Question 2

Can I use stock options to qualify?

Accepted Answer

Yes. Portfolio lenders count vested RSUs and exercisable options. Unvested equity typically doesn't count unless you have a multi-year vesting history.

Question 3

How do portfolio ARMs differ from standard ARMs?

Accepted Answer

Portfolio ARMs aren't sold to Fannie or Freddie, so lenders set their own rules. This allows non-traditional income and higher debt ratios.

Question 4

What rate adjustment caps should I expect?

Accepted Answer

Standard is 2/2/5: 2% max first adjustment, 2% each subsequent adjustment, 5% lifetime cap. Some lenders offer 1/1/5 for stronger profiles.

Question 5

Do portfolio ARMs work for investment properties in Foster City?

Accepted Answer

Yes, but DSCR loans often price better for rentals. Portfolio ARMs shine for owner-occupants with complex income who want lower start rates.

Question 6

How long does underwriting take?

Accepted Answer

Non-QM portfolio lenders close in 15-25 days. Regional banks may take 30-40 days but sometimes offer slightly better rates.

Portfolio ARMs in Foster City: Flexible Financing for Complex Profiles