Question 1

What happens when my ARM adjusts after the fixed period?

Accepted Answer

Your rate adjusts based on an index plus margin, subject to caps. Most 5/6 ARMs adjust every six months after year five, but caps limit how much rates can jump.

Question 2

Can I use crypto holdings to qualify for a portfolio ARM?

Accepted Answer

Some lenders now accept verified cryptocurrency as reserves or income sources. Requirements vary, but this option helps tech workers with significant digital asset holdings qualify.

Question 3

How much down payment do I need in San Carlos?

Accepted Answer

Expect 20% minimum for owner-occupied homes, 25-30% for investment properties. Larger down payments sometimes unlock better rates or waive certain overlays.

Question 4

Why choose a portfolio ARM over a fixed jumbo loan?

Accepted Answer

You'll save 0.5-0.75% in rate if you plan to sell or refinance within the fixed period. Over five years on a $1.5M loan, that's $45,000-$55,000 in interest savings.

Question 5

Do portfolio lenders accept bank statement income documentation?

Accepted Answer

Many do. Self-employed borrowers can qualify using 12-24 months of business or personal bank statements instead of tax returns, though rates may be slightly higher.

Question 6

What credit score do I need for a portfolio ARM in San Carlos?

Accepted Answer

Most lenders want 680 minimum, though 720+ gets you better pricing. Scores below 680 sometimes work with larger down payments or strong compensating factors.

Portfolio ARMs in San Carlos: Flexible Financing Beyond Conventional Limits