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Hillsborough's ultra-high-net-worth market demands loan structures banks can't standardize. Portfolio ARMs fit when your income comes from K-1s, stock options, or assets rather than W-2s.
Recent Federal Reserve signals point to multiple rate cuts later in 2026. That timing could make short-term ARM rates extremely competitive for Hillsborough's luxury segment.
These loans stay on the lender's books instead of being sold to Fannie or Freddie. That flexibility matters when you're financing $5M+ properties with unconventional income streams.
Portfolio ARMs in Hillsborough
No 1099 or W-2? Portfolio ARM lenders evaluate assets, business ownership, and verified reserves. Most want 680+ credit and 20-30% down for Hillsborough properties.
Recent lender innovations now allow crypto holdings to count toward qualification. If you hold verified digital assets, some portfolio lenders count them as reserves or income.
Asset depletion is common here: divide your liquid assets by 360 months to create qualifying income. A $10M portfolio generates $27,778 monthly for underwriting.
Local decision guide
Use this guide to connect portfolio arms eligibility, lender expectations, and local market factors before comparing payment options in Hillsborough.
Hillsborough's ultra-high-net-worth market demands loan structures banks can't standardize. Portfolio ARMs fit when your income comes from K-1s, stock options, or assets rather than W-2s.
Recent Federal Reserve signals point to multiple rate cuts later in 2026. That timing could make short-term ARM rates extremely competitive for Hillsborough's luxury segment.
These loans stay on the lender's books instead of being sold to Fannie or Freddie. That flexibility matters when you're financing $5M+ properties with unconventional income streams.
Portfolio ARM lenders are boutique operations or regional banks with appetite for jumbo risk. Only a handful actively lend in Hillsborough's price range.
We work with 14 portfolio lenders who price competitively above $3M. Each has different appetite for tech equity, foreign income, or investment property cash flow.
Rate sheets change weekly based on each lender's portfolio balance. What's competitive Tuesday may be off-market Friday if they hit their monthly quota.
Most Hillsborough buyers shopping portfolio ARMs have income documentation problems, not credit problems. The ARM structure is incidental—portfolio underwriting is the real feature.
I see 5/1 and 7/1 ARMs dominate here. Buyers plan to refi when rates drop or when their equity vests and they qualify conventionally.
Portfolio lenders price ARMs 50-100 basis points above their fixed-rate products. You're paying for underwriting flexibility, not rate advantage.
Bank Statement loans work if you have 24 months of clean deposits. Portfolio ARMs work when your income is too irregular even for that.
DSCR loans beat portfolio ARMs on rental properties where cash flow covers the payment. Portfolio ARMs win on primary residences with complex income.
Traditional ARMs through Fannie Mae cap at $1,396,800 in San Mateo County. Portfolio ARMs have no ceiling—some lenders go to $15M+.
Hillsborough's $5M+ median price puts most deals into portfolio territory automatically. Conforming and even jumbo programs hit their limits fast here.
Tech compensation dominates this market. Portfolio lenders who understand RSU vesting schedules and option exercise timing price more aggressively.
Property tax at 1.2% effective rate means a $6M home costs $72K annually in taxes. Lenders factor this into debt ratios even on stated-income programs.
Most lenders want 680 minimum. Higher scores unlock better rates and lower down payments, especially above 720.
Yes. Asset depletion works for traditional stocks and bonds. Some lenders now accept verified crypto holdings as reserves or income.
5/1 and 7/1 ARMs are standard. Rate stays fixed 5 or 7 years, then adjusts annually based on an index plus margin.
Many do. Expect 3-5 year step-down penalties. Some lenders waive them for additional pricing or if you refi with them.
Portfolio lenders we work with go to $15M. Above that, you need private banking relationships or multiple properties pledged.