FEMA has issued a disaster, DR# 4856, in California in the following county:

·         Los Angeles

Arc will purchase loans in Los Angeles County on a case-by-case basis if the property is more than 10 linear miles from the nearest evacuation warning perimeter of an active fire at the time of executing the note. A Post Disaster Inspection OR borrower attestation with external pictures of all 4 sides of the property is required, per the chart below, prior to purchase. 

FHA Loans:

For all FHA Purchases, Rate/Term Refinances, Simple Refinances and Cash-Out Refinances with an appraisal dated prior to January 23, 2025, a reinspection of the subject property will be required. The inspection report must meet all FHA disaster inspection requirements and be dated on or after January 23, 2025. If the initial appraisal effective date is on or after January 23, 2025, an additional inspection report is not necessary.

Fannie, Freddie, Arc Access, Arc Elite, Foreign National, USDA, FNMA/FHLMC Second Home-Investment, Conventional Investment Property, VA Loans, all Government Streamline Loans:

For all Fannie/Freddie, Arc Access, Arc Elite, Arc Edge, FNMA/FHLMC Second Home-Investment Property, Conventional Investment Property, VA loans, USDA and FHA Streamlines, if the appraisal was completed prior to January 23, 2025, we will require an exterior inspection. The reinspection must be completed by a licensed appraiser with photographs, verifying the subject property was not impacted by the event. If the exterior inspection indicates any damage has occurred to the property, an additional interior inspection will be required by the appraiser. For any Conventional loan with a Property Inspection Waiver, VA IRRRL, FHA Streamline or USDA Streamline, the inspection must be dated on or after January 23, 2025.

Disaster Inspection Documentation Requirements

The following grid provides direction for different loan types based on whether the loan is closed but not yet funded as well as whether the loan is closed: