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Capitola sits on some of the most expensive coastal land in Santa Cruz County. Conventional loan limits often don't stretch far enough here.
HousingWire flagged a 10.4% drop in mortgage applications as the 30-year fixed hit 6.57%. That's exactly when Portfolio ARMs start looking attractive.
Varies by lender
Min Credit Score
3, 5, 7, or 10 yrs
Fixed Rate Period
Non-QM / Portfolio
Loan Type
Flexible
Income Docs
Portfolio ARMs in Capitola
Portfolio ARMs are non-QM loans. Lenders hold them in-house instead of selling them — so they set their own rules.
That means self-employed borrowers, investors, and high-net-worth buyers with complex income can qualify. Standard W-2 documentation is not always required.
Local decision guide
Use this guide to connect portfolio arms eligibility, lender expectations, and local market factors before comparing payment options in Capitola.
Capitola sits on some of the most expensive coastal land in Santa Cruz County. Conventional loan limits often don't stretch far enough here.
HousingWire flagged a 10.4% drop in mortgage applications as the 30-year fixed hit 6.57%. That's exactly when Portfolio ARMs start looking attractive.
Portfolio ARMs are non-QM loans. Lenders hold them in-house instead of selling them — so they set their own rules.
Most banks won't advertise Portfolio ARMs. You find them through brokers who have direct relationships with portfolio lenders.
At SRK CAPITAL, we work with 200+ wholesale lenders. Several specialize in portfolio products built for high-cost coastal markets like Capitola.
The borrowers I see win with Portfolio ARMs are coastal property buyers who plan to sell or refinance within 5 to 7 years.
A 5/1 or 7/1 ARM structure keeps payments lower during that window. Paying a 30-year fixed rate for a property you'll hold short-term is expensive.
Jumbo fixed loans exist for high-balance Capitola purchases. But the rate premium on a 30-year jumbo fixed is significant.
A Portfolio ARM can cut 50 to 100+ basis points off your starting rate. Rates vary by borrower profile and market conditions.
Capitola's beach cottages and cliffside properties often have quirky title or structure issues. Portfolio lenders are more flexible on those deals.
Santa Cruz County's coastal vacation rental market also attracts investors. Portfolio ARMs can finance properties that don't fit agency guidelines.
The lender keeps the loan instead of selling it. That gives them flexibility to approve deals and set terms that agency lenders won't touch.
Most Portfolio ARMs fix the rate for 3, 5, 7, or 10 years. After that, the rate adjusts annually based on an index plus a margin.
Yes. Portfolio lenders often finance short-term rentals and non-warrantable properties that Fannie Mae and Freddie Mac won't approve.
Not always. Some portfolio lenders qualify borrowers on bank statements, assets, or rental income instead of tax returns.
Rate caps limit how much your rate can move at each adjustment and over the loan's life. Review those caps before you sign.