** 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

Conflict of Interest

  • Personal transactions for owner/principal of mortgage brokerage or correspondent lender originated within own company

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)

Debt-to-Income (DTI)

  • Request for DTI greater than 50%

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

2021 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.

01/17/2022

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