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Los Altos Hills is one of the most expensive zip codes in California. Standard conforming loans cap out well below what most properties here require.
Portfolio ARMs fill that gap. Lenders write these loans to their own rules and hold them in-house — no Fannie Mae, no Freddie Mac guidelines to box you in.
ARM (5/1, 7/1, 10/1)
Rate Structure
700+
Preferred Credit Score
Alternative accepted
Income Docs
Non-QM / Portfolio
Loan Type
5, 7, or 10 years
Fixed Period Options
Portfolio ARMs in Los Altos Hills
These are non-QM loans. Lenders aren't required to follow standard debt-to-income or income documentation rules.
Strong assets matter more than a pay stub here. Lenders want to see substantial reserves, a clean credit profile, and a property that makes sense as collateral.
Local decision guide
Use this guide to connect portfolio arms eligibility, lender expectations, and local market factors before comparing payment options in Los Altos Hills.
Los Altos Hills is one of the most expensive zip codes in California. Standard conforming loans cap out well below what most properties here require.
Portfolio ARMs fill that gap. Lenders write these loans to their own rules and hold them in-house — no Fannie Mae, no Freddie Mac guidelines to box you in.
These are non-QM loans. Lenders aren't required to follow standard debt-to-income or income documentation rules.
Most retail banks won't advertise portfolio ARMs. You find them through private banks, credit unions, and brokers with direct relationships.
HousingWire flagged a shift in ARM demand as fixed rates hit 6.57% — portfolio ARM lenders in this space are actively competing for well-qualified jumbo borrowers right now. Rates vary by borrower profile and market conditions.
I see a lot of Los Altos Hills buyers who are asset-rich but show modest taxable income. Portfolio ARMs are often the right tool for that profile.
The initial fixed period on these loans can run 5, 7, or 10 years. If you plan to sell or refinance before the rate adjusts, the lower starting rate makes real financial sense.
A 30-year fixed jumbo gives you rate certainty. A portfolio ARM gives you a lower initial rate with more underwriting flexibility — different tools for different situations.
DSCR loans work if you're buying investment property based on rental income. Bank statement loans solve the income documentation problem. Portfolio ARMs often do both, depending on the lender.
Los Altos Hills has a one-acre minimum lot size and strict building codes. Properties are custom and hard to comp — portfolio lenders are more comfortable with that than agency lenders.
Santa Clara County's tech-heavy buyer pool includes executives and founders with equity compensation and complex income. Portfolio ARMs are structured for exactly that borrower type.
A portfolio ARM is held by the lender instead of sold to investors. That means the lender sets its own terms and can be more flexible on income and documentation.
No. Portfolio lenders often accept bank statements, asset depletion, or other alternative documentation. That's a core reason high-income tech borrowers use this product.
Loan limits depend entirely on the lender's portfolio guidelines. Some lenders go well above conforming and standard jumbo caps for strong borrowers.
The rate adjusts based on an index plus a margin set in your loan terms. Most borrowers in this market plan to sell or refinance before the first adjustment.
Yes. Portfolio ARMs are non-QM, meaning they don't follow standard qualified mortgage rules. That flexibility is the point — it's not a red flag.
Some portfolio lenders allow investor purchases. Terms vary significantly by lender, so this is exactly where shopping across multiple lenders pays off.