Wholesale ALERT – Updates to Agency Overlays and USDA Guidelines
Agency Overlays
Effective immediately, the Arc Home Conventional and Government Overlays were updated as noted below. The revised Arc Home Conventional Overlays and Government Overlays will be published on the website soon.
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Conventional & Government Overlays |
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Topic |
Previous Guideline |
New Guideline |
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Escrow Holdbacks |
Approval is required for all repair escrows and eligibility is subject to Arc Home discretion. |
Escrow Holdbacks have been temporarily suspended. |
USDA
Effective for all USDA loans, Arc Home will align with the guidance provided by USDA in Updates to HB-1-3555, Chapters 4 and 11 for the topics below. The full USDA Single Family Home Guaranteed Loan Program Handbook (HB-1-3555) is available HERE on the USDA website.
· Liability Payments: If an amount other than what is reflected on the credit report is used in the qualifying debt ratio, the loan must include documentation supporting the amount used. Refer to USDA Handbook (HB-1-3555) Chapter 11.2 for complete details.
· Balloon Payments: When a balloon/deferred payment loan is due within 12 months, the complete loan application must be evaluated to determine the borrower’s repayment ability. Refer to USDA Handbook (HB-1-3555) Chapter 11.2 for details.