Question 1

How do Portfolio ARM rates adjust after the fixed period?

Accepted Answer

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.

Question 2

Can I use cryptocurrency to qualify for a Portfolio ARM in Millbrae?

Accepted Answer

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.

Question 3

What down payment do I need for a $1.5M home in Millbrae?

Accepted Answer

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.

Question 4

Do Portfolio ARMs work for investment properties in San Mateo County?

Accepted Answer

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.

Question 5

How many months of bank statements do lenders require?

Accepted Answer

Most portfolio lenders want 12-24 months of personal or business bank statements. They calculate deposits minus standard expenses to determine qualifying income.

Question 6

What happens if rates drop during my ARM's fixed period?

Accepted Answer

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.

Portfolio ARMs in Millbrae: Flexible Terms for Non-Traditional Borrowers