** 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

  • Subject property acreage is more than 10 acres over the program maximum

Credit Score

  • Cash-out refinance transaction with credit score exception greater than 5 points
  • Payment shock exceeds guideline limits and credit score exception greater than 5 points
  • Any credit score exception and close to program maximums for 3+ items (such as DTI, cash-out, reserves, etc.)
  • Credit score exception greater than 10 points with additional requested exception(s)

Derogatory Credit

  • Request for derogatory credit exception and credit reflects a Bankruptcy within the last 5 years

Escrows (Impound Accounts)

  • Request for waiver of escrows outside of program guidelines

First Time Home Buyer

  • Credit score exception greater than 10 points
  • Request includes more than a single exception
  • Requested income source is Asset Utilization

Foreign National

  • Request for LTV exception

Housing Payment History

  • 1x90 with any other late
  • 2x30 within the last 6 months

Loan Amount

  • Requested loan amount exception greater than 110% of maximum loan amount

Loan-to-Value (LTV)

  • Requested LTV exception greater than 10% of maximum
  • Request for LTV exception on Foreign National program

Mixed-Use Properties

  • Subject property is outside of acceptable Fannie Mae mixed-use guidelines (SFR with office/business)

Multiple Exceptions

  • Request includes multiple exceptions and exception items are not close to program requirements (multiple exceptions considered only when exception items are very close to requirements – 2 points from FICO, 2% from LTV, 1% from DTI)
  • Request includes multiple exceptions and credit score exception greater than 10 points
  • 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 5 months additional reserves (own funds)

NSF/Overdrafts

  • Bank statements reflect > 15 NSF/overdrafts

Rural Properties

  • Requested LTV exceeds 80% for a rural property

Fields marked with asterisk (*) are mandatory