* Exceptions will NOT be considered for any Arc Elite, Conventional Investment, FNMA/FHLMC Second Home & Investment, and/or Jumbo loans. *

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

Arc Access Non-QM Exception Restrictions

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

Acreage

  • No exceptions for acreage

Asset Utilization

  • No exceptions for the use of business funds on the Asset Utilization product

Borrower Residency

  • No exceptions for borrower residency status (permanent or non-permanent resident alien, etc.) with documentation that does not meet guideline requirements and/or is expired
  • No exceptions for borrowers (U.S. Citizen, permanent or non-permanent resident alien) who do not have a valid and verifiable legal address within the U.S.
  • No exceptions for a borrower residency status that does not meet guideline requirements

Cash-Out Seasoning

  • No exceptions for waiving the 12-month seasoning required between cash-out transactions (non-court ordered)

Conflict of Interest

  • No exceptions for personal transactions for owner/principal of mortgage brokerage or correspondent lender originated within own company

Credit Score

  • No exceptions for credit scores on a cash-out refinance transaction
  • No exceptions for credit scores greater than 5 points below the guideline minimum

Debt Service Coverage Ratio (DSCR)

  • No exceptions on cash-out transactions
  • No exceptions for the use of gift funds or gift of equity

Derogatory Credit

  • No derogatory credit exceptions

Escrows (Impound Accounts)

  • No escrow waiver exceptions

First Time Home Buyer

  • No exceptions for credit score, DTI, LTV, loan amount, or reserves
  • No exceptions for income source as Asset Utilization
  • No exceptions for housing history verification when the borrower is currently renting

Housing Payment History

  • No exceptions for housing payment history on Full Doc or Alt Doc Income
  • No exceptions to allow more than 2x30 within the last 12 months on Clean Slate; derogatory credit event must be seasoned at least 48 months

Income

  • On Alt Income, no exceptions for use of business income when borrower has been self-employed for less than 20 months

Loan Amount

  • No exceptions for loan amounts greater than $500,000 above the maximum loan amount
  • No exceptions for loan amounts less than minimum loan amount
  • No exceptions for loan amounts greater than $3,500,000

Loan-to-Value (LTV)

  • No exceptions for LTVs greater than 5% over guidelines

Mixed-Use Properties

  • No exceptions for a subject property, which is a daycare facility

Multiple Exceptions

  • No exceptions for multiple exceptions that are not close to program requirements
  • Request includes multiple exceptions and does not have one of the following:
  • LTV less than 10% of maximum and loan amount less than maximum
  • Borrower has more than six (6) months additional reserves (own funds)

NSF/Overdrafts

  • No exceptions for NSF/overdraft permitted

Non-Occupant Co-Borrower

  • No exceptions for alternative income documentation for a non-occupant co-borrower; occupying borrower must have a DTI ratio of 60% or less, exclusive of income and debts of the non-occupant, and combined DTI may not exceed 55%

Reserves

  • No exceptions to waive more than four (4) months reserves for programs that require at least 12 months of reserves
  • No exceptions to waive reserves for programs that require six (6) months of reserves or less

2022 Arc Home LLC | All Rights Reserved | Nothing in this document shall constitute a commitment to lend or guaranty to lend at a specified rate or under any specific terms and conditions. Eligibility to participate in any and all commercial lending programs are subject to credit review, underwriting and subject property approval. Programs, rates, fees, terms and conditions are subject to change at any time and without notice.
Arc Home LLC conducts business as Arc Home Loans LLC in AR, FL, IL, MO, TX and WI and, as Arc Home LLC, a limited liability company of Maryland, in OR.

12/06/2022

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