Question 1

What is a portfolio ARM exactly?

Accepted Answer

It's an adjustable-rate mortgage a lender holds instead of selling. That means the lender sets its own terms and can be more flexible.

Question 2

Are portfolio ARMs riskier than fixed loans?

Accepted Answer

Your rate adjusts after the initial period, so your payment can rise. Understanding your rate caps upfront is non-negotiable.

Question 3

Can I use a portfolio ARM to buy in Milpitas as an H-1B visa holder?

Accepted Answer

Many portfolio lenders will work with visa holders. It depends on the lender — this is where broker access to 200+ lenders makes a real difference.

Question 4

How does the initial rate period work?

Accepted Answer

You get a fixed rate for an intro period — often 5, 7, or 10 years. After that, the rate adjusts on a schedule defined in your loan docs.

Question 5

Is this the same as a non-QM loan?

Accepted Answer

Yes. Portfolio ARMs don't follow agency guidelines, so they're classified as non-QM. Lenders underwrite them using their own criteria.

Question 6

Who should avoid a portfolio ARM?

Accepted Answer

Buyers on fixed incomes or those planning to stay long-term often fare better with a fixed rate. Rates vary by borrower profile and market conditions.

Portfolio ARMs in Milpitas: Flexible Financing for Silicon Valley