* 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.


  • 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


  • 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)


  • 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%


  • 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

Fields marked with asterisk (*) are mandatory