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San Mateo's tech-heavy economy creates unique borrower profiles that standard loans can't serve. Portfolio ARMs work for borrowers with stock comp, crypto holdings, or business structures that confuse automated underwriting.
Recent Fed signals point to rate cuts later in 2026, which changes the ARM calculus. Portfolio lenders can structure caps and adjustment periods based on your actual income timing, not generic guidelines.
Portfolio ARMs in San Mateo
Portfolio ARMs don't follow agency rules because lenders keep these loans on their books. Credit requirements start around 660, but some lenders go lower with larger down payments or compensating factors.
Income documentation varies by lender. Some accept bank statements, others use tax returns, and a few now qualify borrowers using verified crypto assets as reserves and income sources.
Local decision guide
Use this guide to connect portfolio arms eligibility, lender expectations, and local market factors before comparing payment options in San Mateo.
San Mateo's tech-heavy economy creates unique borrower profiles that standard loans can't serve. Portfolio ARMs work for borrowers with stock comp, crypto holdings, or business structures that confuse automated underwriting.
Recent Fed signals point to rate cuts later in 2026, which changes the ARM calculus. Portfolio lenders can structure caps and adjustment periods based on your actual income timing, not generic guidelines.
Portfolio ARMs don't follow agency rules because lenders keep these loans on their books. Credit requirements start around 660, but some lenders go lower with larger down payments or compensating factors.
Only a subset of our 200+ lenders offer true portfolio ARMs. The ones that do set their own rules, which means terms vary dramatically between shops.
Some portfolio lenders cap at $3M, others go higher. Rate structures differ too—some start with 3/1 ARMs, others prefer 7/1 or 10/1 products with more gradual adjustments.
San Mateo borrowers use portfolio ARMs when they plan to sell or refi within 5-7 years. If you're riding out a vesting schedule or expect a liquidity event, the lower start rate beats a 30-year fixed.
Watch the margin and caps, not just the teaser rate. Lenders compete on initial rates but bury risk in the fine print. We've seen margins range from 2.25% to 3.75% on similar borrower profiles.
Standard ARMs follow agency rules with rate caps and qualifying requirements set by Fannie or Freddie. Portfolio ARMs ignore those rules entirely—lenders decide what works.
DSCR loans serve investors who want rental income to qualify them. Portfolio ARMs serve anyone the lender believes can pay, using any income source they'll accept. Different tools for different situations.
San Mateo County properties often exceed conforming limits, pushing borrowers into jumbo or portfolio territory. Portfolio ARMs handle both the loan size and the borrower complexity Silicon Valley creates.
Local lenders understand RSU vesting schedules and startup equity structures. That knowledge gap between national and regional portfolio lenders shows up in approval rates and final terms.
Most lenders want 660 minimum, but we've placed borrowers at 620 with 30% down and strong reserves. Each portfolio lender sets their own floor.
Portfolio lenders evaluate equity comp case by case. Some average vesting history, others project future grants if you're at an established company.
Some portfolio lenders now accept verified crypto as reserves and income sources. Availability depends on the specific lender and their risk appetite.
Your rate adjusts based on an index plus the margin specified in your note. Most portfolio ARMs cap each adjustment at 2% and lifetime at 5-6%.
Some do, some don't. Lenders negotiate this point. We always ask for no penalty or a short sunset period.
Figure 3-5 weeks from application to close. Portfolio loans require more manual underwriting than agency products, which adds time.