ALERT – Qualifying Rate Update for Fannie Mae 7 yr/6mo ARM
Effective August 21, 2023 for all Fannie Mae loans, Arc Home will align with the change communicated in Fannie Mae Announcement SEL-2023-05 for the topic below. Important Note: This change applies to the standard Conforming and High Balance 7year/6month ARM, as well as the HomeReady Conforming and High Balance 7year/6month ARM programs.
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Fannie Mae Conforming & High Balance (Standard and HomeReady) |
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Topic |
Previous Guideline |
New Guideline |
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Qualifying Rate 7yr/6mo ARM |
Borrowers will be qualified on the greater of the Note Rate or Fully Indexed Rate. |
Borrowers will be qualified on the Note Rate. |