Question 1

How much can my rate increase on a portfolio ARM?

Accepted Answer

Most cap lifetime increases at 5-7% above your start rate. First adjustment caps vary from 2-5%. Always confirm both caps before locking.

Question 2

Can I use stock options to qualify?

Accepted Answer

Yes. Portfolio lenders count vested options, RSUs, and trust distributions as income. They'll ask for vesting schedules and recent award statements.

Question 3

Do portfolio ARMs have prepayment penalties?

Accepted Answer

Some do, typically lasting 1-3 years. Penalties range from 2-5% of the loan balance. Ask your broker to find lenders without them if you plan to sell or refi early.

Question 4

How does this differ from a jumbo ARM?

Accepted Answer

Jumbo ARMs follow stricter qualification rules. Portfolio ARMs offer flexible underwriting but usually start at higher rates and adjust more frequently.

Question 5

Can I qualify using cryptocurrency holdings?

Accepted Answer

Some portfolio lenders now accept verified crypto as reserves and income. You'll need exchange statements showing holdings over time. Not all lenders offer this yet.

Portfolio ARMs Built for Woodside's High-Net-Worth Borrowers