Topic

Previous Requirements

New Requirements

Cash-Out Refinance – Max LTV

Maximum LTV for Primary Residence Cash-Out Refinance is 89.99%

Maximum LTV for Primary Residence Cash-Out Refinance is 80%

Appraisal Waivers (12.5; Appendix A)

Property Inspection Waiver (PIW) not allowed. Desktop Appraisal as minimum assessment not permitted.

Property Inspection Waiver (PIW), Value Acceptance, Value Acceptance + Property Data Report, Hybrid Appraisal, and Desktop Appraisal based on AUS recommendation is not allowed.

Appraisal Requirements (12.5)

Two (2) full appraisals are required for loan amounts > $1,500,000.

Two (2) full appraisals are required for loan amounts > $2,000,000.

First Time Home Buyer – Rent Verification (5.1)

Silent

Arc Home does not allow the use of verification of asset reports to identify recurring rent payments to potentially enhance the AUS credit assessment.

Eligible Ownership Types (5.4)

Ownership must be fee simple only and must be in the name of the individual borrower(s) or trust. Borrower(s) may hold title as follows:

·    Individual

·    Joint Tenants

·    Tenants in Common

Removed Tenants in Common from eligible ownership.

Ownership must be fee simple only and must be in the name of the individual borrower(s) or trust. Borrower(s) may hold title as follows:

·    Individual

·    Joint Tenants

Loan Seasoning (7.9)

Silent

The period between the closing date and the lock date must not exceed 90 days.

Rental Payment History (8.4; Appendix A)

For rental verification, a standard VOR completed by a professional management company, or 24 months bank statements or cancelled checks are required.

For rental verification, a standard VOR completed by a professional management company, or 24 months bank statements/cancelled checks and a lease agreement to document the term and payment are required.

Mortgage History – Forbearance (8.4; Appendix A)

If primary residence housing history reflects a forbearance arrangement, the payment history must reflect 0x30 lates in the most recent 24 months since exiting forbearance. The payment history must be provided by the lender/servicer of the loan.

Removed primary residence reference – requirements apply to all properties.

If housing history reflects a forbearance arrangement, the payment history must reflect 0x30 lates in the most recent 24 months since exiting forbearance. The payment history must be provided by the lender/servicer of the loan.

Derogatory Credit Event – Modification (8.7; Appendix A)

Silent

At least seven (7) years must have elapsed since bankruptcy discharge or dismissal, foreclosure, notice of default (NOD), short sale, deed-in-lieu or modification measured from the date of completion to the date of application.

Commission/Bonus Income (9.2; Appendix A)

Income must be documented with a written VOE breaking down the bonus or commission income for the past 2 years or a year-to-date paystub and W-2s supporting the income.

Income must be documented with a written VOE breaking down the bonus or commission income for the past 2 years or a year-to-date paystub and W-2s supporting the income. Commission/Bonus income with less than a 2-year history may not be used for qualification.

Unacceptable Income – Virtual Currency (9.4)

Unacceptable income sources include the following:

·    Any source that cannot be verified

·    Restricted stock income (RSU)

·    Income that is temporary

·    Rental Income (Boarder Income) received from the borrower’s primary residence

·    Expense account payments

·    Retained earnings

·    Automobile allowances

Unacceptable income sources include the following:

·    Any source that cannot be verified

·    Restricted stock income (RSU)

·    Income that is temporary

·    Rental Income (Boarder Income) received from the borrower’s primary residence

·    Expense account payments

·    Retained earnings

·    Automobile allowances

·    Virtual Currency