Arc Home is excited to announce eligibility expansions and updates for the Edge Non-QM Agency Plus, Alt Income, and Debt Service Coverage Ratio (DSCR) programs, effective for loans registered on or after March 11, 2024. The SPARC portal is updated with the revisions; however, the Correspondent Quick Qualifier on the Arc Home website will not reflect these changes until next week.

Agency Plus

The Edge 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 Edge Agency Plus matrix for complete expansion and program eligibility details, which will be published HERE soon.

·         Maximum Debt-to-Income (DTI) increased to 50%, in most cases

·         Maximum LTV/CLTV increased to 80% for transactions with 1x30x12 housing history and credit events seasoned 36-48 months (previously 75%)

·         For Cash-Out with LTV > 65%, $1.0mm cash-in-hand now permitted (previously capped at $500,000)

Alt Income

The Edge Alt Income matrix for Bank Statements, 1099s, and CPA Prepared P&L documentation types was revised to include eligibility enhancements and program updates. Check out the highlights noted below for the Edge Alt Income (Bank Statements, 1099s, and CPA Prepared P&L) program. Important Note: This communication does not specify every change being implemented – review the revised Edge Alt Income matrix for complete details of the expansion and program eligibility, which will be published HERE soon.

·         Maximum Debt-to-Income (DTI) increased to 50%, in most cases

·         Minimum FICO for Investment Properties reduced to 700 (previously 740 minimum)

·         For Cash-Out with LTV > 65%, $1.0mm cash-in-hand now permitted (previously capped at $500,000)

Access DSCR

The Edge 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 Edge DSCR matrix for complete expansion and program eligibility details, which will be published HERE soon.

·         NEW! Minimum .80 Debt Service Coverage Ratio (DSCR) eligibility

§   Purchase and Rate/Term Refinance allowed up to 75% LTV with 720 FICO

§   Cash-Out Refinance allowed up to 70% LTV with 720 FICO

·         Purchase and Rate/Term Refinance minimum FICO reduced to 700 for 80% LTV (previously 740)

·         For Cash-Out with LTV > 65%, $1.0mm cash-in-hand now permitted (previously capped at $500,000)

The Arc Underwriting Guide was updated within several topics for the Access and Edge programs. The changes are effective for loans registered on or after March 11, 2024.

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 and Edge 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.