Question 1

What is a portfolio ARM exactly?

Accepted Answer

It's an adjustable rate mortgage the lender keeps instead of selling. That gives them freedom to set their own guidelines.

Question 2

Do portfolio ARMs work for rural Sierra County properties?

Accepted Answer

Yes. Properties that fail agency appraisals or income tests often get approved through portfolio lenders. That's the main draw here.

Question 3

How often does the rate adjust?

Accepted Answer

It depends on the loan structure. Common options are 5/1, 7/1, or 10/1 — fixed for the intro period, then annual adjustments.

Question 4

Is there a prepayment penalty?

Accepted Answer

Some portfolio ARMs include one. Always ask before you sign. The penalty period and amount vary by lender.

Question 5

Can self-employed borrowers qualify?

Accepted Answer

Often yes. Many portfolio lenders accept bank statements in place of tax returns. That's a real advantage for 1099 earners.

Question 6

How is this different from a standard ARM?

Accepted Answer

Standard ARMs follow agency rules. Portfolio ARMs don't. That means more room to work with on income, property type, and loan structure.

Portfolio ARMs in Loyalton, CA: Flexible Financing for a Rural Market