Adjustable Rate Mortgages (ARM)
Lower initial interest rates with rate adjustments after a fixed period. Choose from 5/1, 7/1, or 10/1 ARMs with built‑in rate caps to protect you from extreme fluctuations.
ARM Loan Guidelines
Loan Parameters
- Loan Terms30 year (5/1, 7/1, 10/1 ARM)
- Initial Fixed Period5, 7, or 10 years
- Adjustment FrequencyEvery 12 months after fixed period
- Rate Caps (Periodic)Typically 2% per adjustment
- Rate Caps (Lifetime)Typically 5% above start rate
- Max LTV (Purchase)97% (with PMI) / 90% for investment
Borrower Requirements
- Min Credit Score620
- Down Payment3% – 20% (varies by loan type)
- Debt-to-Income RatioUp to 50%
- Employment History2+ years
- OccupancyPrimary, Second Home, Investment
Property Requirements
- Property TypesSFR, Condo, Townhome, 2-4 Unit
- Appraisal RequiredYes
- PMI RequiredIf down payment < 20%
- ARM IndexSOFR or Treasury Index
Why Choose an ARM?
Lower Initial Rate
Start with a lower interest rate than fixed-rate mortgages – ideal for short‑term ownership.
Rate Caps Protect You
Built‑in periodic and lifetime caps limit how much your rate can increase.
Ideal for Short‑Term Plans
If you plan to move or refinance within 5–10 years, an ARM can save you thousands.
Higher Loan Amounts
ARM products are available for conforming, jumbo, and even investment properties.