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Los Gatos is prime territory for Portfolio ARMs. Properties here routinely exceed conforming loan limits, and buyers often need terms that standard lenders won't touch.
HousingWire noted ARM demand is shifting as fixed rates climb. For Los Gatos buyers borrowing at jumbo levels, that shift makes sense.
700+
Typical Min Credit Score
5, 7, or 10 Years
Common Fixed Periods
12 Months Typical
Reserves Required
Non-QM / Portfolio
Loan Classification
Adjustable After Fixed
Rate Type
Portfolio ARMs in Los Gatos
Portfolio ARMs are non-QM loans. Lenders hold them in-house, so they set their own rules — credit, income, and reserve requirements vary widely.
Most lenders want 700+ credit, 12 months of reserves, and strong assets. Self-employed borrowers and high-income earners with complex tax returns do well here.
Local decision guide
Use this guide to connect portfolio arms eligibility, lender expectations, and local market factors before comparing payment options in Los Gatos.
Los Gatos is prime territory for Portfolio ARMs. Properties here routinely exceed conforming loan limits, and buyers often need terms that standard lenders won't touch.
HousingWire noted ARM demand is shifting as fixed rates climb. For Los Gatos buyers borrowing at jumbo levels, that shift makes sense.
Portfolio ARMs are non-QM loans. Lenders hold them in-house, so they set their own rules — credit, income, and reserve requirements vary widely.
Retail banks rarely advertise these. Portfolio ARMs live in the private and wholesale lending world — you won't find them on Zillow's rate board.
We work with 200+ wholesale lenders. That reach matters here. Portfolio ARM terms differ dramatically from lender to lender.
The best use case I see for Portfolio ARMs in Los Gatos: tech executives with RSUs, complex equity comp, and short hold horizons. A 5/1 or 7/1 ARM often beats a 30-year fixed for them.
Watch the margin and caps closely. The start rate looks great. What matters is the fully indexed rate and how fast it can move after the fixed period ends.
Versus a jumbo fixed, a Portfolio ARM usually starts lower. If you sell or refi within 7 years, you may never hit an adjustment.
DSCR loans work for rental properties. Bank Statement loans solve income documentation. Portfolio ARMs solve the rate-and-term problem for high-balance primary purchases.
Santa Clara County's property values make jumbo financing the norm in Los Gatos. Portfolio ARMs are built for exactly this price range.
Buyers here often move within 5-7 years — promotions, company exits, lifestyle changes. An ARM's fixed window often aligns with that reality.
The lender keeps it on their own books instead of selling it. That means they can set flexible terms not allowed under agency guidelines.
Most run 5, 7, or 10 years fixed before adjusting. The right term depends on how long you plan to hold the property.
Yes — this is one of the better options for self-employed borrowers. Lenders can use bank statements or asset depletion instead of tax returns.
Start rates are often competitive with jumbo fixed products. Rates vary by borrower profile and market conditions.
Portfolio lenders frequently go well above conforming limits. Loan amounts depend on the lender and your full financial profile.
The rate changes based on an index plus a margin. Caps limit how much it can move per adjustment and over the loan's life.