Question 1

What's the main difference between portfolio ARMs and regular ARMs?

Accepted Answer

Portfolio ARMs stay with the original lender instead of being sold. This allows flexible underwriting but typically means higher rates and fewer lender options.

Question 2

Can I use a portfolio ARM for a rental property in Cotati?

Accepted Answer

Yes, portfolio ARMs work well for investment properties. Many lenders focus on the property's rental income rather than your personal debt-to-income ratio.

Question 3

How often does the rate adjust on these loans?

Accepted Answer

Most adjust after an initial fixed period of 5, 7, or 10 years, then annually. Each lender sets different caps and margins, so terms vary significantly.

Question 4

Do portfolio ARM lenders accept bank statements for income verification?

Accepted Answer

Many do, but requirements vary by lender. Some accept 12-24 months of bank statements while others use different documentation methods entirely.

Question 5

Are portfolio ARMs harder to qualify for than conventional loans?

Accepted Answer

Not necessarily harder, just different. You'll need more down payment, but income and employment verification can be more flexible than conventional standards.

Portfolio ARM Loans in Cotati: Flexible Financing Beyond Agency Guidelines