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Santa Clara sits at the center of Silicon Valley. High incomes, complex compensation, and premium property prices make standard loan programs a poor fit for many buyers here.
HousingWire flagged ARM demand shifting as 30-year fixed rates hit 6.57%. That shift makes sense — portfolio ARMs offer a lower entry rate when fixed-rate costs run high.
Typically lower
Initial Rate vs. Fixed
3, 5, 7, or 10 yrs
Common Fixed Periods
Varies by lender
Credit Requirement
Non-QM
Loan Type
200+ wholesale
Lender Access
Portfolio ARMs in Santa Clara
Portfolio ARMs are non-QM loans. Lenders set their own rules — no Fannie or Freddie guidelines to follow.
Strong assets and high income help. Lenders want to see you can handle rate adjustments. Expect stricter reserve requirements than a conventional loan.
Local decision guide
Use this guide to connect portfolio arms eligibility, lender expectations, and local market factors before comparing payment options in Santa Clara.
Santa Clara sits at the center of Silicon Valley. High incomes, complex compensation, and premium property prices make standard loan programs a poor fit for many buyers here.
HousingWire flagged ARM demand shifting as 30-year fixed rates hit 6.57%. That shift makes sense — portfolio ARMs offer a lower entry rate when fixed-rate costs run high.
Portfolio ARMs are non-QM loans. Lenders set their own rules — no Fannie or Freddie guidelines to follow.
Not every lender offers portfolio ARMs. Banks and credit unions that hold loans in-house are your main source.
At SRK CAPITAL, we work with 200+ wholesale lenders. Several specialize in portfolio products built for high-cost California markets like Santa Clara.
Tech workers with RSUs and bonus income rarely fit a clean W-2 box. Portfolio lenders can underwrite actual compensation — not just base salary.
Watch the adjustment caps. A 2/1/5 cap structure means 2% first adjustment, 1% per year after, 5% lifetime. Know what your worst-case payment looks like before you close.
A conventional ARM gets sold to Fannie Mae. A portfolio ARM stays with the originating lender. That one difference changes everything about how it's underwritten.
DSCR loans work for rental income. Bank statement loans suit self-employed borrowers. Portfolio ARMs fit high-earners who need rate flexibility and non-standard income documentation.
Santa Clara property values are high. Loan amounts often push past conforming limits, making portfolio products one of the few options that work at this price point.
Short holding periods are common here. Engineers change jobs. Companies get acquired. A 5/1 or 7/1 ARM can make sense if you plan to sell or refinance before the rate adjusts.
The lender keeps the loan instead of selling it. That means they set their own terms and can underwrite outside agency guidelines.
Many portfolio lenders accept RSU and bonus income. Documentation requirements vary — your lender will specify exactly what they need.
Common structures are 3/1, 5/1, 7/1, and 10/1. The first number is your fixed-rate period in years before adjustments begin.
Your rate changes based on an index plus a margin. Cap structures limit how much it can move at each adjustment and over the loan's life.
It can be — especially for short-term holds or bridge situations. Run the numbers against a DSCR loan before deciding.
Portfolio lenders typically require more down than agency loans. Expect 20–30% depending on the lender and property type.