Question 1

Can I use RSUs to qualify for a Portfolio ARM in Sunnyvale?

Accepted Answer

Yes, most portfolio lenders count RSUs as qualifying income. They typically average your vesting schedule over 12-24 months and apply a haircut for volatility.

Question 2

How do adjustment caps work on Portfolio ARMs?

Accepted Answer

Most have 2/2/5 caps: 2% max on first adjustment, 2% on subsequent adjustments, 5% lifetime. Your specific loan terms may vary by lender.

Question 3

What down payment do I need for a Portfolio ARM?

Accepted Answer

Minimums range from 10-20% depending on the lender and your profile. Stronger credit and reserves can reduce the required down payment.

Question 4

Do Portfolio ARMs require tax returns?

Accepted Answer

Not always. Many portfolio lenders offer bank statement or asset-based qualification that skips tax returns entirely for qualifying borrowers.

Question 5

How does my adjustment index affect future rates?

Accepted Answer

Most portfolio ARMs tie to SOFR or Treasury indexes. Your margin stays fixed, but the index fluctuates with broader rate movements.

Question 6

Can I refinance out of a Portfolio ARM later?

Accepted Answer

Yes. Most borrowers treat these as bridge financing and refinance to conventional once their income stabilizes or documentation improves.

Portfolio ARMs in Sunnyvale: Flexible Financing for Tech-Heavy Borrowers