Question 1

What makes a portfolio ARM different from a regular ARM?

Accepted Answer

The lender keeps it on their own books instead of selling it. That means more flexible terms and fewer agency restrictions.

Question 2

How long does the fixed rate period last?

Accepted Answer

Most portfolio ARMs offer fixed periods of 3, 5, 7, or 10 years. After that, the rate adjusts on a set schedule.

Question 3

Can self-employed borrowers qualify in Santa Barbara?

Accepted Answer

Yes — portfolio lenders often accept bank statements or asset depletion instead of tax returns. Guidelines vary by lender.

Question 4

Are there loan limits on portfolio ARMs?

Accepted Answer

No agency limits apply. The lender sets its own maximum. This makes portfolio ARMs practical for Santa Barbara's higher price points.

Question 5

What credit score do I need?

Accepted Answer

It depends on the lender. Most want at least 680, but strong assets can sometimes offset a lower score.

Question 6

Is a portfolio ARM a good fit for investment property here?

Accepted Answer

It can be, especially for short-hold strategies. DSCR loans may be better if rental income is your primary qualifier.

Portfolio ARMs in Santa Barbara: Flexible Rates for Complex Buyers