Question 1

What makes a portfolio ARM different from a regular ARM?

Accepted Answer

The lender keeps the loan — they don't sell it. That lets them write their own terms, adjust documentation rules, and price based on your full profile.

Question 2

Do portfolio ARMs work for tech employees with RSU income?

Accepted Answer

Yes. Portfolio lenders can count RSUs, bonuses, and equity distributions. Standard agency loans often can't qualify that income the same way.

Question 3

How are rate adjustments handled on portfolio ARMs?

Accepted Answer

Each lender sets their own caps on how much the rate can move. Always confirm the adjustment cap, margin, and index before you sign.

Question 4

Are portfolio ARMs harder to get in Palo Alto?

Accepted Answer

Not harder — just different. You need strong assets and a clear income story. Lenders here are used to complex, high-net-worth borrowers.

Question 5

Can I refinance out of a portfolio ARM later?

Accepted Answer

Yes, and many Palo Alto buyers plan to. Check for prepayment penalties before committing — some portfolio loans include them.

Question 6

What loan amounts can portfolio ARMs cover in Santa Clara County?

Accepted Answer

Portfolio lenders aren't bound by agency limits. They can go well above conforming and jumbo thresholds — ask your broker what each lender tops out at.

Portfolio ARMs in Palo Alto: Flexible Financing for High-Value Homes