Wholesale ALERT – Updates to Access, Edge, Elite, Fannie Mae & Freddie Mac Guidelines
Access, Edge & Elite
Arc Home is excited to announce guideline and eligibility updates to the Access Non-QM Debt Service Coverage Ratio (DSCR) program, effective for new loans registered on or after December 18, 2023. Additionally, the Arc Underwriting Guide for Access Non-QM, Edge Non-QM and Elite QM was updated within several topics, which is effective for all loans.
Please review the Arc Guideline Update Summary for a side-by-side comparison of the guideline revisions, which is available HERE. As a reminder, this summary document is intended to highlight the guideline updates only; please refer to the Arc Underwriting Guide and product matrices for the complete Access, Edge and Elite guidelines.
The updated program matrices, as applicable, will be published on the website soon (HERE). The revised Arc Underwriting Guide is available within the SPARC 2.0 portal HERE.
Fannie Mae
Effective for all Fannie Mae loan applications dated on or after January 1, 2024, Arc Home will align with the changes communicated by Fannie Mae in Announcement SEL-2023-09 for the topics below.
· Rental Income: Updated requirements for rental income used towards qualifying, which includes clarified guidelines related to the use of rental income from a non-subject property and revised the documentation requirements for lease agreements. Refer to Fannie Mae Selling Guide B3-3.1-08 for complete details.
· Self-Employed Borrowers: Clarified guidelines and documentation requirements for the use of self-employment income when the borrower has less than a two-year history of self-employment. Refer to Fannie Mae Selling Guide B3-3.2-01 for details.
Freddie Mac
Effective for all Freddie Mac loan applications dated on or after December 18, 2023, Arc Home will align with the change communicated in Freddie Mac Bulletin 2023-19 for the topic below.
· Rental Income: Updated rental income guidelines and documentation requirements. Refer to Freddie Mac Selling Guide Section 5306.3 and Section 5306.4 for complete details.