Correspondent ALERT – Updates for Arc Access DSCR

Arc Home is excited to announce guideline and eligibility updates to the Arc Access Non-QM Debt Service Coverage Ratio (DSCR) program, effective for new loans registered on or after September 27, 2023.

Highlights

·        Improved Purchase transaction eligibility to allow loan amount up to $3,000,000 with 700 credit score and 1.0 DSCR

·        Increased maximum LTV/CLTV for Cash-Out transactions to 75% for 1-unit properties

·        Reduced credit event seasoning to 36 months for bankruptcy, foreclosure, and short sale

Please review the Access NQM & Elite QM Update Summary for a side-by-side comparison of all current Access DSCR eligibility and guideline revisions, which will be available HERE soon. As a reminder, this summary document is intended to highlight the updates only; please refer to the Arc Selling Guide and product matrix for complete Arc Access DSCR program guidelines.

The updated program matrix will be published on the website (HERE) soon. As a reminder, the Arc Selling Guide for Access and Elite is available within the SPARC portal (HERE).