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Millbrae sits in one of California's most expensive counties. Traditional conforming loans cap at $832,750 — a number that barely covers a studio here. Portfolio ARMs fill that gap for borrowers who don't fit agency boxes.
These loans stay on the lender's books instead of getting sold to Fannie or Freddie. That means underwriters can approve deals conventional programs reject. Recent Fed commentary suggests rate cuts may arrive later this year, which could lower adjustment caps on new ARMs.
Portfolio ARMs in Millbrae
Portfolio ARMs accept alternative income documentation. Bank statements, asset depletion, and now even verified crypto holdings can qualify borrowers. Credit score minimums typically start at 660, but some lenders go lower for strong compensating factors.
Down payment requirements run 20-30% depending on loan size and risk profile. Reserves matter more than DTI for most portfolio lenders. Expect to show 6-12 months of payments in liquid assets.
Local decision guide
Use this guide to connect portfolio arms eligibility, lender expectations, and local market factors before comparing payment options in Millbrae.
Millbrae sits in one of California's most expensive counties. Traditional conforming loans cap at $832,750 — a number that barely covers a studio here. Portfolio ARMs fill that gap for borrowers who don't fit agency boxes.
These loans stay on the lender's books instead of getting sold to Fannie or Freddie. That means underwriters can approve deals conventional programs reject. Recent Fed commentary suggests rate cuts may arrive later this year, which could lower adjustment caps on new ARMs.
Portfolio ARMs accept alternative income documentation. Bank statements, asset depletion, and now even verified crypto holdings can qualify borrowers. Credit score minimums typically start at 660, but some lenders go lower for strong compensating factors.
Portfolio ARM lenders aren't listed on Zillow. These programs come from regional banks, credit unions, and specialized non-QM shops. Each lender builds their own underwriting guidelines since no agency dictates terms.
Rate and margin spreads vary wildly. One lender might offer 7.5% with a 2.5% margin while another quotes 8.25% with a 2% margin. Shopping multiple portfolio lenders isn't optional — it's required to find competitive pricing.
Portfolio ARMs work best for borrowers who expect income growth or plan to refinance within five years. The initial fixed period (usually 3, 5, or 7 years) gives you time to improve your financial profile.
I see self-employed Millbrae buyers use these when their tax returns show aggressive deductions. Their bank statements prove actual cash flow. Adjustment caps protect you after the fixed period ends — typically 2% per adjustment and 5-6% lifetime.
DSCR loans focus on rental property cash flow. Bank statement loans work for any property type but require 12-24 months of statements. Portfolio ARMs give lenders even more flexibility on documentation and terms.
The trade-off is rate. Portfolio ARMs typically price 0.75-1.5% higher than conforming ARMs. But they approve deals that conventional programs won't touch. For Millbrae buyers priced out of conforming limits, that premium buys access.
Millbrae's proximity to SFO attracts international buyers and tech transplants. Many have substantial assets but unconventional income sources. Portfolio ARM lenders understand this buyer profile better than agency underwriters.
San Mateo County appraisals come in tight. Lenders know local comps and property value trends. That institutional knowledge helps when you're financing a $1.5M home with a non-traditional income story.
Rates adjust based on an index plus a margin, typically capped at 2% per adjustment and 5-6% over the loan life. The initial fixed period gives you 3-7 years of stable payments.
Some non-QM lenders now accept verified crypto holdings for income qualification and reserves. Asset verification and volatility buffers apply, but it opens doors for tech buyers with alternative wealth.
Expect 20-30% down depending on credit and reserves. A $1.5M purchase typically requires $300K-$450K down plus 6-12 months of reserves in liquid assets.
Yes, but DSCR loans often price better for pure rental properties. Portfolio ARMs make more sense for owner-occupied homes or complex scenarios where DSCR doesn't fit.
Most portfolio lenders want 12-24 months of personal or business bank statements. They calculate deposits minus standard expenses to determine qualifying income.
You can refinance anytime if rates improve and your financial profile strengthens. Many borrowers use the fixed period to build conventional loan eligibility then refinance into lower rates.