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Half Moon Bay's coastal real estate attracts buyers who don't fit conventional lending boxes. Self-employed professionals, property investors, and retirees with complex income need loans that look past W-2s.
Portfolio ARMs stay with the lender instead of being sold to Fannie or Freddie. That means underwriters can approve deals based on actual ability to pay rather than agency guidelines.
As of February 2026, the Fed signals more rate cuts ahead but not immediately. Portfolio ARM borrowers benefit when rates drop since these loans adjust with market conditions.
Portfolio ARMs in Half Moon Bay
Most portfolio ARM lenders accept 12-24 months of bank statements for income calculation. Credit scores as low as 620 work, though 680+ gets better terms.
Down payments typically start at 20% for primary homes, 25% for second homes. Investment properties often require 30% down.
Recent developments in non-QM lending now allow verified crypto holdings as reserves. Some lenders count these assets toward qualification, opening doors for tech professionals with unconventional wealth.
Local decision guide
Use this guide to connect portfolio arms eligibility, lender expectations, and local market factors before comparing payment options in Half Moon Bay.
Half Moon Bay's coastal real estate attracts buyers who don't fit conventional lending boxes. Self-employed professionals, property investors, and retirees with complex income need loans that look past W-2s.
Portfolio ARMs stay with the lender instead of being sold to Fannie or Freddie. That means underwriters can approve deals based on actual ability to pay rather than agency guidelines.
As of February 2026, the Fed signals more rate cuts ahead but not immediately. Portfolio ARM borrowers benefit when rates drop since these loans adjust with market conditions.
Portfolio ARM pricing varies wildly between lenders. We shop 200+ wholesale sources because rates on the same deal can differ by a full point.
Larger regional banks often have portfolio programs but price conservatively. Private lenders move faster and take more property types but charge premium rates.
Adjustment caps and margin matter more than start rate. A 2/2/5 cap structure with a 2.5% margin beats a lower start rate with worse terms long-term.
Half Moon Bay buyers often have seasonal income from agriculture or hospitality. Portfolio lenders average deposits over 12-24 months, smoothing out fluctuations that kill conventional deals.
Vacation rental properties work better with portfolio ARMs than traditional investor loans. Lenders count projected rental income even without two-year history.
Watch the adjustment schedule. Some loans adjust every six months, others annually. Annual adjustments give more stability while still capturing rate drops.
DSCR loans beat portfolio ARMs for pure investment plays focused on rental income. But portfolio ARMs work better when you need to show personal income or want lower rates.
Bank statement loans offer fixed rates while portfolio ARMs adjust. Choose fixed if you plan to hold long-term. Choose ARMs if you'll refinance or sell within 5-7 years.
Conventional ARMs require full tax returns and hit debt-ratio limits. Portfolio ARMs skip both, making them the only option for many self-employed borrowers.
Coastal Half Moon Bay properties face higher insurance costs and geological considerations. Portfolio lenders factor these into underwriting without automatic denials.
Properties on Coastal Commission land or with agricultural zoning often get rejected by conventional lenders. Portfolio programs evaluate these case-by-case.
Short-term rental regulations affect vacation property values. Portfolio underwriters assess local ordinances as part of approval, not as automatic disqualifiers.
Most adjust annually after an initial fixed period of 3, 5, or 7 years. Adjustment caps limit increases to 2% per adjustment and 5% lifetime.
Select non-QM lenders now count verified cryptocurrency holdings toward reserves and income. Requirements vary by lender and volatility considerations apply.
Minimum 620 for most programs, but 680+ unlocks better rates and terms. Higher scores offset other risk factors like low down payment.
Yes, portfolio lenders evaluate projected rental income without requiring two-year history. This works well for Half Moon Bay short-term rental properties.
When the Fed cuts rates, portfolio ARMs typically adjust downward at your next adjustment date. Caps limit how much rates can drop in one adjustment.
Primary homes start at 20% down, second homes at 25%, investment properties at 30%. Higher down payments improve rates and approval odds.