Question 1

What makes a portfolio ARM different from a regular ARM?

Accepted Answer

The lender keeps it — not Fannie or Freddie. That means more flexible terms and looser underwriting guidelines.

Question 2

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

Accepted Answer

Yes. Portfolio ARMs are common for investor purchases. Some lenders qualify you on the property's rental income, not your personal income.

Question 3

How long is the initial fixed period on a portfolio ARM?

Accepted Answer

It varies by lender. Common options are 3, 5, 7, or 10 years fixed before the rate starts adjusting.

Question 4

Are portfolio ARMs harder to qualify for than conventional loans?

Accepted Answer

They're different, not harder. Guidelines vary by lender, and alt-doc income options often make qualifying easier for self-employed borrowers.

Question 5

What happens to my rate after the fixed period ends?

Accepted Answer

It adjusts based on an index plus a margin. Your cap structure limits how much it can move at each adjustment and over the loan's life.

Portfolio ARMs in Marysville, CA — Flexible Lending Outside the Box