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Los Altos sits in one of the most expensive zip codes in California. Standard conforming loans rarely cover what homes here actually cost.
HousingWire flagged a 10.4% drop in mortgage applications as the 30-year fixed hit 6.57%. That rate environment is exactly where Portfolio ARMs start looking smart for Los Altos buyers.
700+
Typical Min Credit Score
5/1, 7/1, 10/1
Common ARM Structures
12–24 months
Reserves Required
Non-QM / Portfolio
Loan Type
Portfolio ARMs in Los Altos
Portfolio ARMs are non-QM loans. Lenders set their own rules since they keep the loan in-house rather than selling it.
Most lenders want strong credit — 700+ is typical. Reserves of 12 to 24 months are common at Los Altos price points.
Local decision guide
Use this guide to connect portfolio arms eligibility, lender expectations, and local market factors before comparing payment options in Los Altos.
Los Altos sits in one of the most expensive zip codes in California. Standard conforming loans rarely cover what homes here actually cost.
HousingWire flagged a 10.4% drop in mortgage applications as the 30-year fixed hit 6.57%. That rate environment is exactly where Portfolio ARMs start looking smart for Los Altos buyers.
Portfolio ARMs are non-QM loans. Lenders set their own rules since they keep the loan in-house rather than selling it.
Most big banks won't touch these. Portfolio ARMs come from private lenders, credit unions, and regional banks with appetite for jumbo risk.
We work with 200+ wholesale lenders at SRK CAPITAL. That matters here — pricing and terms on portfolio products vary dramatically by lender.
The best use case I see for Portfolio ARMs in Los Altos: tech executives with RSUs, stock comp, or complex income. Standard underwriting chokes on that.
ARMs also make sense when you know your hold period. Buying before a company relocation in 5 years? A 7/1 ARM saves real money over a fixed rate.
A jumbo fixed loan gives you rate certainty. A Portfolio ARM gives you a lower initial rate with adjustment risk after the fixed period ends.
DSCR loans work if the property generates rent. Bank Statement loans solve income documentation. Portfolio ARMs solve the rate and flexibility problem for owner-occupied jumbo buys.
Santa Clara County's loan environment rewards borrowers with liquid assets. Portfolio lenders here weight reserves heavily — cash in the bank closes deals.
Los Altos buyers tend to move within 5 to 7 years. That aligns well with 5/1 or 7/1 ARM structures before any rate adjustment kicks in.
It's an adjustable-rate mortgage a lender keeps on its own books. Because it's not sold off, the lender can set flexible terms standard loans don't allow.
Common structures are 5/1, 7/1, and 10/1. The first number is the fixed-rate years before the rate starts adjusting annually.
Yes — that's one of their strongest use cases. Portfolio lenders can accept bank statements or asset depletion instead of tax returns.
Most portfolio lenders want 700 or higher for Los Altos loan sizes. Some go lower with strong compensating factors like large reserves.
Initial rates can be competitive — sometimes lower than a 30-year fixed. Rates vary by borrower profile and market conditions.
Yes. Many borrowers use the ARM for the fixed period, then refinance before the first adjustment. Prepayment terms vary by lender.