Question 1

What credit score do I need for a portfolio ARM in Farmersville?

Accepted Answer

Most lenders want 660 minimum, though some go to 620 with strong compensating factors. Credit above 700 unlocks better rate tiers.

Question 2

How does the adjustable rate work after the fixed period?

Accepted Answer

Rate adjusts annually based on an index plus margin. Most have 2% annual caps and 5-6% lifetime caps to limit payment shock.

Question 3

Can I use farm income to qualify?

Accepted Answer

Yes, portfolio lenders review bank statements showing deposits rather than requiring Schedule F forms. Seasonal patterns are acceptable with 12-24 months history.

Question 4

What down payment do portfolio ARMs require?

Accepted Answer

Expect 15-25% down depending on credit, property type, and income documentation. Investment properties typically need 25% minimum.

Question 5

How long does portfolio ARM approval take?

Accepted Answer

Timeline runs 3-4 weeks typically. More complex income documentation can add a week, but it's faster than most expect.

Question 6

Can I refinance before the rate adjusts?

Accepted Answer

Absolutely. Most borrowers refinance during the fixed period if rates drop or their financial profile improves enough to qualify conventionally.

Portfolio ARMs in Farmersville: Flexible Financing Beyond Traditional Guidelines