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HousingWire flagged a 10.4% weekly drop in mortgage applications as the 30-year fixed hit 6.57%. That shift is pushing smart borrowers toward ARMs.
Portfolio ARMs sit outside standard lending rules. Lenders keep these loans in-house, so they can offer terms you won't find at a bank.
620 (typical)
Min Credit Score
3, 5, 7, or 10 yrs
Initial Fixed Period
Non-QM Portfolio
Loan Type
Flexible / Alt-doc
Income Docs
Portfolio ARMs in Modesto
Portfolio ARMs are non-QM loans. That means lenders set their own rules on income, credit, and reserves.
Most portfolio lenders want at least a 620 credit score. Some go lower if you have strong assets or a large down payment.
Local decision guide
Use this guide to connect portfolio arms eligibility, lender expectations, and local market factors before comparing payment options in Modesto.
HousingWire flagged a 10.4% weekly drop in mortgage applications as the 30-year fixed hit 6.57%. That shift is pushing smart borrowers toward ARMs.
Portfolio ARMs sit outside standard lending rules. Lenders keep these loans in-house, so they can offer terms you won't find at a bank.
Portfolio ARMs are non-QM loans. That means lenders set their own rules on income, credit, and reserves.
Big retail banks rarely touch portfolio ARMs. You need a broker with access to wholesale lenders who actually keep loans on their books.
SRK CAPITAL works with 200+ wholesale lenders. We shop this product across multiple options to find the best fit for your deal.
Portfolio ARMs work best for borrowers who don't fit the conventional mold — self-employed, investors, or those with complex income.
The initial fixed period matters. A 5/1 ARM locks your rate for five years. Know your exit strategy before you sign.
A standard ARM gets sold to Fannie or Freddie. A portfolio ARM stays with the lender — that changes everything about the terms.
DSCR loans and bank statement loans serve similar borrower profiles. Portfolio ARMs often beat them on initial rate.
Modesto attracts investors and self-employed buyers priced out of the Bay Area. Portfolio ARMs fit that profile directly.
Stanislaus County has a strong rental market. Investors using portfolio ARMs here often pair them with DSCR loan strategies on the refi side.
The lender keeps it instead of selling it. That means they can set their own qualifying rules and terms.
Yes — this is one of the best fits. Lenders can use bank statements or asset depletion instead of tax returns.
Common options are 3, 5, 7, or 10 years fixed before the rate adjusts. Your exit plan should match that timeline.
Yes. Many Modesto investors use them for buy-and-hold strategies where they plan to refinance or sell within the fixed period.
Most lenders start at 620. Some go lower with compensating factors like strong reserves or a large down payment.
Most do, but caps vary by lender. Always confirm the periodic cap and lifetime cap before closing. Rates vary by borrower profile and market conditions.