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Portfolio ARMs in Exeter
Exeter's tight-knit ag economy produces incomes traditional lenders struggle to underwrite. Portfolio ARMs work for orchardists, investors, and self-employed borrowers whose tax returns don't tell the full story.
Most Exeter properties fall under conforming limits, but portfolio ARMs shine when your income documentation doesn't fit agency boxes. Lenders keep these loans in-house, so they write their own rules.
Rates vary by borrower profile and market conditions. Expect initial rates 0.5-1.5% higher than conforming ARMs, but you're buying flexibility standard programs won't provide.
Credit minimums start at 660 for most portfolio ARM lenders. Some accept 620 with compensating factors like 30% down or significant reserves.
Income verification is where these loans separate from agency products. Bank statements, 1099 income, and asset-based qualifications all work when documented properly.
Down payments typically run 20-25%. Investment properties need 25-30%. These aren't first-time buyer loans—they're solutions for established borrowers with non-standard profiles.
Portfolio ARM lenders operate differently than agency lenders. They fund from their own balance sheet, which means faster decisions but varying appetite based on their current loan mix.
Not every lender offers these products. We access 15-20 portfolio lenders who actively write in the Central Valley, each with different rate structures and adjustment caps.
Rate locks run 30-45 days typically. Some lenders price adjustments daily based on their portfolio needs—timing matters more than with conforming loans.
Portfolio ARMs work best for borrowers who expect income growth or plan to refinance within 5-7 years. The initial rate advantage over portfolio fixed-rate loans can save thousands annually.
Watch the adjustment caps closely. Most portfolio ARMs cap at 2% per adjustment and 5% lifetime, but these vary by lender. A 2/2/5 cap structure protects better than 3/1/6.
Exeter borrowers often use these for investment properties or complex income situations. If you're farming 40 acres and buying a rental, this loan type probably fits better than conventional.
Portfolio ARMs cost more than standard ARMs but accept borrowers agency lenders decline. If you qualify for conventional, take it—the rate spread isn't worth it.
Bank statement loans offer similar flexibility with fixed rates. Portfolio ARMs make sense when you want the lower initial payment or expect rates to drop during the adjustment period.
DSCR loans work better for pure investment plays. Portfolio ARMs fit borrowers who need income flexibility across multiple property types or mixed-use scenarios.
Exeter's citrus and farming income creates documentation challenges for traditional underwriting. Portfolio ARM lenders understand seasonal cash flow and 1099 income structures common here.
Properties near Exeter's historic downtown or newer developments off Highway 65 both qualify. Lenders focus more on your income documentation than property location within city limits.
Some lenders restrict rural parcels over 5 acres. If you're financing ag land with a residence, confirm acreage limits upfront—portfolio policies vary significantly on this.
Most portfolio ARMs adjust annually after an initial 3, 5, or 7-year fixed period. Adjustments tie to an index plus margin, capped by the loan's adjustment limits.
Yes. Portfolio lenders accept Schedule F income, 1099 forms, and bank statements showing ag deposits. Documentation requirements vary by lender.
Adjustment caps limit rate increases. A 2/2/5 cap means maximum 2% increase per adjustment and 5% over loan life, protecting against extreme payment jumps.
Yes, with 25-30% down. Many investors use these for flexible qualification when DSCR loans don't fit their income structure.
Initial rates run 0.5-1.0% lower than portfolio fixed-rate mortgages. You're trading long-term rate certainty for near-term payment savings.
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.