ALERT – Updates for Foreign National and Freddie Mac
Foreign National
Effective immediately, the minimum FICO score requirement for any Foreign National borrower with U.S. credit has been increased to 700 (from 680).
The updated Foreign National program matrix will be available on the Arc Home website soon – you will find Wholesale HERE and Correspondent HERE.
Freddie Mac
Effective immediately for all Freddie Mac loans, Arc Home will align with the changes communicated in Freddie Mac Bulletin 2023-22 for the topics below.
· First-Time Homebuyer: The “First-Time Homebuyer” definition was modified to clarify that timeshare ownership is not considered ownership interest in a residential property. Refer to the Freddie Mac Glossary for the revised definition.
· Timeshare Related Obligations: Updated guidelines to indicate that timeshare loans are considered installment debts, regardless of how the obligations are reported on the borrower’s credit report, and to specify that timeshare maintenance fees are not required to be included in the qualifying monthly debt-to-income (DTI) ratio. Refer to Freddie Mac Selling Guide Section 5202.5 and Section 5401.2 for details.