Question 1

What is a portfolio ARM and how does it differ from a standard ARM?

Accepted Answer

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.

Question 2

Do I need to show W-2 income to qualify?

Accepted Answer

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.

Question 3

How high can the loan amount go on a portfolio ARM in Los Altos Hills?

Accepted Answer

Loan limits depend entirely on the lender's portfolio guidelines. Some lenders go well above conforming and standard jumbo caps for strong borrowers.

Question 4

What happens when the fixed period ends and the rate adjusts?

Accepted Answer

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.

Question 5

Is a portfolio ARM a non-QM loan?

Accepted Answer

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.

Question 6

Can I use a portfolio ARM to buy an investment property in Los Altos Hills?

Accepted Answer

Some portfolio lenders allow investor purchases. Terms vary significantly by lender, so this is exactly where shopping across multiple lenders pays off.

Portfolio ARMs in Los Altos Hills: Flexible Financing for High-Value Homes