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San Carlos sits in one of California's most expensive housing markets. Median home prices here routinely exceed conforming loan limits, making portfolio products essential for many buyers.
Portfolio ARMs give lenders freedom to approve loans they wouldn't sell to Fannie or Freddie. That flexibility matters in San Mateo County, where high earners often have complex income or want larger loan amounts.
As of February 2026, multiple rate cuts are expected later this year. That could make ARMs more attractive than fixed-rate jumbo loans for borrowers planning shorter hold periods.
Portfolio ARMs in San Carlos
Portfolio lenders typically want 680+ credit and 20% down for owner-occupied homes. Investment properties need 25-30% down and higher credit scores.
Income documentation varies by lender. Some accept bank statements, crypto assets, or investment income that conventional underwriters reject.
Debt-to-income ratios can stretch to 50% when compensating factors exist. Strong reserves and liquid assets help offset higher ratios.
Local decision guide
Use this guide to connect portfolio arms eligibility, lender expectations, and local market factors before comparing payment options in San Carlos.
San Carlos sits in one of California's most expensive housing markets. Median home prices here routinely exceed conforming loan limits, making portfolio products essential for many buyers.
Portfolio ARMs give lenders freedom to approve loans they wouldn't sell to Fannie or Freddie. That flexibility matters in San Mateo County, where high earners often have complex income or want larger loan amounts.
As of February 2026, multiple rate cuts are expected later this year. That could make ARMs more attractive than fixed-rate jumbo loans for borrowers planning shorter hold periods.
About 30 of our 200+ lenders offer portfolio ARMs. Each one prices risk differently based on their own capital and appetite.
Some lenders now accept verified crypto holdings for qualification. This matters in San Carlos, where tech workers often hold significant digital assets.
Rate structures vary widely. One lender might offer 5/6 ARMs at 6.75% while another prices 7/6 ARMs at 6.25%. Shopping across lenders saves money.
Most San Carlos borrowers using portfolio ARMs fall into two groups: high earners with jumbo loan needs, or investors acquiring multiple properties.
The borrowers who benefit most plan to sell or refinance within the fixed period. If you're staying 10+ years, a fixed-rate jumbo makes more sense.
Watch adjustment caps closely. A 2/2/5 cap structure protects you better than 5/2/5, especially if rates rise faster than expected.
Portfolio ARMs beat conventional ARMs when your loan exceeds conforming limits or your income doesn't fit agency boxes.
Compared to fixed jumbo loans, you'll save 0.5-0.75% in rate during the fixed period. That's $500-$750 monthly on a $1M loan.
Bank statement loans offer similar flexibility but typically cost more. If you can document income traditionally, portfolio ARMs price better.
San Carlos homebuyers often need $1.5M+ in financing. Portfolio ARMs handle those amounts without the rate premiums typical on mega-jumbo loans.
Tech equity compensation creates lumpy income that agency underwriters struggle with. Portfolio lenders evaluate total net worth, not just W-2 wages.
San Mateo County property taxes run 1.2-1.3% of assessed value. Factor that into your total payment when calculating DTI and affordability.
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.
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.
Expect 20% minimum for owner-occupied homes, 25-30% for investment properties. Larger down payments sometimes unlock better rates or waive certain overlays.
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.
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.
Most lenders want 680 minimum, though 720+ gets you better pricing. Scores below 680 sometimes work with larger down payments or strong compensating factors.