Question 1

How do portfolio ARM rates compare to fixed rates in Waterford?

Accepted Answer

Portfolio ARMs typically start 0.5-1% lower than fixed rates. After the fixed period ends, they adjust based on an index plus margin, usually capped at 2% per adjustment.

Question 2

Can I qualify using cryptocurrency assets?

Accepted Answer

Some portfolio lenders now accept verified crypto holdings for qualification. They typically require 6-12 months of documented ownership and discount the value by 25-40% for volatility.

Question 3

What happens if I can't refinance before the ARM adjusts?

Accepted Answer

Your rate adjusts based on the index plus margin, capped by adjustment limits. Most portfolio ARMs have 2% annual caps and 5% lifetime caps from the start rate.

Question 4

Do portfolio lenders care about recent tax returns?

Accepted Answer

Many portfolio programs skip tax returns entirely, using bank statements instead. Others want one year instead of two. Each lender sets different documentation rules.

Question 5

How much can I borrow on a Waterford property?

Accepted Answer

Portfolio lenders typically go to $3M, though most Waterford properties stay under $500K. Loan-to-value ratios max at 75-80% for most non-QM scenarios.

Question 6

Why would a lender hold loans instead of selling them?

Accepted Answer

Lenders keep portfolio loans to earn long-term interest income and serve borrowers who don't fit agency boxes. This lets them write their own underwriting rules.

Portfolio ARMs in Waterford: Flexible Financing Beyond Standard Guidelines