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Portfolio ARMs in Dixon
Dixon's mix of agricultural land, detached homes, and multi-unit properties creates situations where standard loans don't fit. Portfolio ARMs give lenders freedom to approve deals Fannie and Freddie won't touch.
These loans work when you have strong equity but income that doesn't show up on tax returns. Lenders keep the loan instead of selling it, so they write their own rules on qualification.
Most Dixon buyers chasing rental properties or large lots hit qualification walls with conventional loans. Portfolio ARMs bypass those walls if the deal itself makes sense to the lender.
Most portfolio ARM lenders want 20-30% down and credit scores around 660 minimum. They care more about your overall financial picture than specific debt ratios.
Income verification varies by lender—some accept bank statements, some look at asset reserves, others just want proof the property cash flows. No two portfolio lenders underwrite the same way.
Expect to show 6-12 months of reserves and explain any credit issues from the past two years. Lenders want confidence you can handle rate adjustments when they come.
Only a handful of lenders in California actively hold ARMs in portfolio right now. Most are regional banks and private lenders who know Central Valley markets.
Rates run 1-2% higher than conforming ARMs because lenders carry the risk themselves. You're paying for flexibility and speed, not the cheapest rate.
Some portfolio lenders cap how high your rate can adjust, others don't. Read the adjustment language carefully—these terms aren't standardized like agency loans.
Many lenders offering portfolio ARMs also do DSCR and bank statement loans. If you qualify for those, compare pricing before committing to an ARM structure.
Portfolio ARMs make sense when you plan to sell or refinance before the first adjustment. Paying higher rates for flexibility you won't use wastes money.
I see these work best for Dixon buyers purchasing fixer properties or land with plans to flip or develop within three years. The ARM structure buys time without forcing full income documentation.
If your income is genuinely complex but stable, a bank statement loan usually beats a portfolio ARM. You get fixed rates and clearer terms for similar qualification flexibility.
Never assume you can refinance out before adjustment. Lenders approved you once under specific conditions—those conditions might not exist in three years.
DSCR loans beat portfolio ARMs when you're buying rental property and the rents cover the payment. You get fixed rates without proving personal income at all.
Bank statement loans give you fixed rates using 12-24 months of deposits. If you have consistent self-employment income, that's cleaner than an ARM gamble.
Standard ARMs through Fannie or Freddie offer lower rates but require full income documentation. If you can qualify conventionally, skip portfolio products entirely.
Dixon's rural properties and ag land parcels often need portfolio financing because standard appraisals struggle with comparable sales. Lenders willing to hold the loan can make their own valuation calls.
Multi-family properties in older Dixon neighborhoods sometimes have deferred maintenance that scares off agency underwriters. Portfolio lenders can approve based on post-repair value if the deal makes sense.
Solano County's mix of commuters and local workers creates self-employment income patterns that don't fit traditional qualification boxes. Portfolio ARMs let lenders look past the tax return and evaluate actual cash flow.
Expect rates 1-2% above conforming ARMs, varying by down payment and credit. Rates vary by borrower profile and market conditions.
Yes, portfolio lenders set their own income rules. Many accept bank statements, asset depletion, or just property cash flow instead of W-2s.
Your rate changes based on an index plus a margin set at closing. Some lenders cap adjustments, others don't—read your loan docs carefully.
Most want 6-12 months of payment reserves in the bank. They need confidence you can handle rate increases when adjustments hit.
Only if DSCR loans don't work for your situation. DSCR products offer fixed rates and ignore your personal income entirely for rentals.
Mortgage financing for independent contractors and freelancers who earn 1099 income instead of traditional W-2 wages.
Mortgage programs that allow borrowers to qualify based on liquid assets rather than traditional employment income.
Non-QM loans that use 12 to 24 months of bank statements to verify income for self-employed borrowers.
Short-term financing that bridges the gap between buying a new property and selling an existing one.
Debt Service Coverage Ratio loans that qualify investors based on a rental property's income rather than personal income.
Mortgage programs designed for non-US citizens and non-permanent residents who want to purchase property in the United States.
Asset-based short-term loans primarily used by real estate investors for property acquisition and renovation projects.
Mortgages that allow borrowers to pay only the interest for an initial period, resulting in lower monthly payments upfront.
Financing solutions tailored for real estate investors purchasing rental properties, fix-and-flip projects, or investment portfolios.
Home loans for borrowers who have an Individual Taxpayer Identification Number instead of a Social Security number.
Non-QM mortgages that use a CPA-prepared profit and loss statement to verify income for self-employed borrowers.
Home loans with interest rates that adjust periodically based on market conditions after an initial fixed-rate period.
Specialized mortgage programs designed to support homeownership in underserved communities with flexible qualification criteria.
Mortgages that meet the guidelines and loan limits set by Fannie Mae and Freddie Mac for secondary market purchase.
Financing for building a new home or making major renovations, typically converting to a permanent mortgage upon completion.
Traditional mortgage financing not backed by a government agency, offering flexible terms and competitive rates for qualified borrowers.
Innovative loan products that leverage projected home equity growth to provide favorable financing terms.
Government-insured mortgages from the Federal Housing Administration with low down payments and flexible credit requirements.
A revolving line of credit secured by your home equity that allows you to borrow funds as needed during a draw period.
A fixed-rate second mortgage that provides a lump sum of cash by borrowing against the equity built in your home.
Mortgages that exceed the conforming loan limits set by the FHFA, designed for financing high-value luxury properties.
Loans for homeowners aged 62 and older that convert home equity into cash without requiring monthly mortgage payments.
Government-backed zero down payment mortgages for eligible rural and suburban homebuyers who meet income limits.
Government-guaranteed mortgages for eligible veterans, active-duty service members, and surviving spouses with zero down payment.