Question 1

What makes a portfolio ARM different from a standard ARM?

Accepted Answer

The lender keeps it instead of selling it. That means they set their own terms, not Fannie Mae's.

Question 2

Can I use a portfolio ARM to buy an investment property in Petaluma?

Accepted Answer

Yes. Portfolio lenders often allow investment properties where conventional programs restrict them.

Question 3

How often does the rate adjust on a portfolio ARM?

Accepted Answer

Most are fixed for 5 or 7 years, then adjust annually. Your note will spell out the exact schedule.

Question 4

What index do portfolio ARMs typically use?

Accepted Answer

SOFR is most common now. Some lenders use their own cost-of-funds index. Ask before you commit.

Question 5

Is a portfolio ARM a non-QM loan?

Accepted Answer

Often yes. Portfolio lenders don't need to meet QM standards, which is why terms are more flexible.

Question 6

What happens if I want to refinance before the rate adjusts?

Accepted Answer

Check for prepayment penalties — some portfolio ARMs have them. They're negotiable on some programs.

Portfolio ARMs in Petaluma, CA — Flexible Financing on Your Terms