Arc Home is excited to announce eligibility expansions and updates for the Access Non-QM Agency Plus, Alt Income, and Debt Service Coverage Ratio (DSCR) programs, effective for loans registered on or after February 12, 2024. Our systems are updated accordingly.
Agency Plus
The Access Agency Plus program matrix was updated with the eligibility changes highlighted below, as well as a few other program adjustments. Important Note: This communication does not specify every change being implemented – review the revised Access Agency Plus matrix for complete expansion and program eligibility details, which will be published HERE soon.
· Maximum Cash-Out Refinance LTV/CLTV increased to 80% for Non-Warrantable Condo (previously 75%)
· Minimum required reserves reduced to as low as three (3) months
· For Cash-Out with LTV </= 60%, unlimited cash-in-hand now permitted (previously capped at $1.0mm)
Access Alt Income
The Access Alt Income matrix for Bank Statements, 1099s, One Year Full Doc, and CPA Prepared P&L documentation types was revised to include eligibility enhancements and program updates, AND to incorporate the Access Asset Utilization and Access Asset Qualifier eligibility details within the same table. Check out the highlights noted below for the Arc Access Alt Income (Bank Statements, 1099s, One Year Full Doc, CPA Prepared P&L, Asset Utilization, and Asset Qualifier) program. Important Note: This communication does not specify every change being implemented – review the revised Access Alt Income matrix for complete details of the extensive expansion and program eligibility, which will be published HERE soon.
· Primary Residence
§ Maximum loan amount increased to $3.5mm for Purchase and Rate/Term (previously $3.0mm)
§ Minimum credit score reduced to 660 for $2.5mm Purchase and Rate/Term (previously 680) and 680 for Cash-Out (previously 700)
§ Maximum LTV/CLTV increased to 85% for 2-4 unit Purchase and Rate/Term (previously 80%) and 80% for Cash-Out (previously 75%)
· Second Home
§ Maximum loan amount increased to $3.5mm for Purchase and Rate/Term (previously $2.5mm) and $3.0mm for Cash-Out (previously $2.0mm)
§ Minimum credit score reduced to 660 for $2.5mm Purchase and Rate/Term (previously 700)
§ Maximum LTV/CLTV increased to 85% for Purchase and Rate/Term (previously 80%) and 75% for Cash-Out (previously 70%)
· Investment
§ Maximum loan amount increased to $3.0mm for Purchase, Rate/Term, and Cash-Out (previously $2.0mm)
§ Minimum credit score reduced to 660 for $1.5mm Purchase and Rate/Term (previously 680)
§ Maximum LTV/CLTV increased to 85% for Purchase and Rate/Term (previously 80%) and 75% for Cash-Out (previously 70%)
· Combined 1-unit and 2-4 unit eligibility, in most cases
· Minimum required reserves reduced to as low as three (3) months
· For Cash-Out with LTV </= 60%, unlimited cash-in-hand now permitted (previously capped at $1.0mm)
Access DSCR
The Access DSCR program matrix has been updated with the eligibility enhancements highlighted below, as well as other program adjustments. Important Note: This communication does not specify every change being implemented – review the revised Access DSCR matrix for complete expansion and program eligibility details, which will be published HERE soon.
· NEW! Purchase and Rate/Term Refinance transactions to $2.0mm offered with reduced credit scores
§ 1-4 unit allowed up to 60% LTV with 660 FICO
§ 1-4 unit allowed up to 65% LTV with 680 FICO
· NEW! Purchase and Rate/Term Refinance transactions to $1.5mm offered with reduced credit scores
§ 1-4 unit allowed up to 65% LTV with 660 FICO
§ 1-4 unit allowed up to 70% LTV with 680 FICO
· Cash-Out Refinance:
§ LTV increased to 75% at 720 credit score to $1.5mm loan amount (previously 70%)
§ Minimum credit score reduced to 660 for $1.0mm loan amount at 65% LTV (previously 680)
§ For LTV </= 60%, unlimited cash-in-hand now permitted (previously capped at $1.0mm)
· Minimum required reserves reduced to as low as three (3) months
Access, Edge & Elite Guideline Updates
The Arc Underwriting Guide was updated within several topics for the Access, Edge, and Elite programs. The changes are effective immediately 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 program guidelines.
The revised program matrices will be published HERE on the Arc Home website soon, and the revised Arc Underwriting Guide is available within the SPARC 2.0 portal HERE.