* Exceptions are only allowed on Agency overlays, Access suite, and soft guidelines on Edge suite. *

** The exception form is located below the exception restrictions, please review the restrictions and continue to the bottom of the page. **

Exception Restrictions

At this time, Arc Home will not consider exceptions submitted for transactions when any of the items noted below are present.

Borrower Eligibility

  • Borrowers (U.S. Citizen, permanent or non-permanent resident alien) who do not have a valid and verifiable legal address within the U.S.
  • DACA borrowers
  • Personal transactions for owner/principal of mortgage brokerage or correspondent lender originated within own company
  • Closing in the Name of an Entity where the Entity has layered ownership
  • CPA PTIN Verification
  • More than 7 NSFs in the most recent year

Debt Service Coverage Ratio (DSCR)

  • True First Time Homebuyers who have never held ownership in a property ever.
  • The use of gift of equity
  • Intervivos Revocable Trusts
  • DSCR < .75

All Program Requirements

  • Qualify and escrow with tax exemptions, such as a homestead exemption
  • Escrow Holdbacks
  • Loan amounts less than minimum loan amount
  • Loan amounts greater than $4,000,000.00
  • LTVs greater than program maximum
  • Waiving more than four (4) months reserves for programs that require at least 12 months of reserves
  • Waiving reserves for programs that require six (6) months or less
  • Residual income below the minimum
  • DTI greater than 55%
  • Mixed use properties that do not meet Fannie Mae requirements
  • Unique properties
  • More than 25 acres
  • Self employment less than 1 year
  • CPA P&L Product without bank statements to support the P&L

Note: All loans must adhere to Higher-Priced Mortgage Loans (HPML)/Regulation Z and Ability to Repay/Qualified Mortgage (ATR/QM) regulations.

Fields marked with asterisk (*) are mandatory