Arc Home Wholesale ALERT – New Jersey Prepayment Penalty Enhancement for Arc Access Non-QM!

Arc Home is excited to announce that prepayment penalties are now available for New Jersey investment property (business purpose) transactions within our Arc Access Non-QM program, effective for Wholesale loans registered on or after September 5, 2023. The Arc Access Non-QM program offers prepayment penalty options up to five (5) years.

A prepayment penalty in New Jersey is allowed only when closing in the name of an entity for investment transactions and is subject to the applicable entity vesting requirements detailed in the Arc Selling Guide – Access & Elite. Within SPARC 2.0, simply complete the NJ Business Entity? field (select “Yes” or “No”), then identify the Prepayment Penalty Term for the transaction.

Important Notes

·         New Jersey must be selected as the property state for the NJ Business Entity? field to be visible in SPARC 2.0.

·         SPARC 2.0 must be used to ensure accurate pricing and eligibility for New Jersey investment property transactions, as the third-party pricing engines are unable to capture the New Jersey entity vesting requirement and/or applicable prepayment penalty pricing adjustments.

·         Prepayment penalty products are available only for Investment property transactions within the Arc Access Non-QM suite of products, which includes Agency Plus, Alt Income, Clean Slate, and Debt Service Coverage Ratio (DSCR).

The revised Arc Selling Guide for Access and Elite is available within the SPARC portal (HERE).