Frequently Asked Questions

For brevity, Arrive Home™ down payment assistance for FHA loans may simply be referred to as “DPA.

Similarly, the Arrive Home™ Earned Equity Program may simply be referred to as the “EEP.”

References to “Arrive Home™” without clarifying either program apply to both.

Finally, where a FAQ has two parts (#a and #b), the first always refers to Arrive Home™ DPA and the second always refers to the Arrive Home™ EEP.

No. Arrive Home™ down payment assistance for FHA loans and the Arrive Home Earned Equity Program provide different products with different requirements.

Arrive Home™ DPA provides traditional DPA attached to an FHA loan. To get a summary of Arrive Home™ program requirements, please ask us about our product matrix. To get a detailed breakdown of the DPA program requirements, please see our Correspondent Lending Guide.

The Arrive Home™Earned Equity Program also helps borrowers become homeowners, but provides more tools for borrowers with nontraditional (or no) credit. The Earned Equity Program also does not pair a borrower with an FHA loan and is more similar to a lease-to-own program where the borrower is able to fully treat the home as if it were traditionally owned. To get a summary of EEP requirements, please see our Earned Equity Program Underwriting Matrix.

Yes. DPA allows for property types per FHA 203(b) loans, 1–2 units only; includes SFR, PUD, townhome, condo, attached, detached, and modular (CLG 3.7).

Manufactured homes are allowed with additional overlays (CLG 4).

Certain features, such as building on own land and loans with resale deed restrictions, are ineligible (CLG 3.23.7).

Yes. Second homes, investment properties, 3–4 units, and co-ops are not allowed (EEP UW Matrix “Property Eligibility”).

Arrive Home™ does not have overlays on homeowner’s insurance.

Arrive Home™ DPA does not have overlays and would accept the decision of the DE underwriter.

Bank statements are required for self-employed borrowers with the EEP. Specifically, the EEP requires the previous year’s tax returns (documented as filed with the IRS, or executed tax stamps, required), a YTD P&L, and two months of bank statements (to document cash flow) (EEP UW Matrix “Self-Employed”).

Yes. Our DPA program does not have overlays on housing history.

No. 12 months of documented payment history (in good standing) is required (EEP UW Matrix “Housing History”).

Arrive Home™ does not have overlays and would accept the decision of the DE underwriter.

Yes.

The DPA program does not have overlays on when the FHA first mortgage can be refinanced or paid off. Follow FHA guidelines.

For the second mortgage DPA, there are subordination limitations (CLG 8.2) that the borrower may want to consider. In essence, no Arrive Home™ second mortgage may be subordinated during the first 36 months of the loan, beginning with the first payment. A refinance or sale would force a payoff of the second mortgage. See the Correspondent Lending Guide for more details.

The borrower would first need to assume the FHA first mortgage and meet FHA guidelines before selling the property. Other conditions may apply.

Arrive Home™ does not have overlays and would accept any licensed home inspector or other home inspection that meets relevant Agency guidelines.

Arrive Home™ DPA does not have overlays and would accept the decision of the DE underwriter.

The EEP allows the payment to be amortized over a period of no greater than 180 months (EEP UW Matrix “Judgements and/or Tax Liens”).

Arrive Home™ does not have overlays and would accept the decision of the DE underwriter.

For the EEP, 12 months of documented payment history are required, and what documentation is allowed is determined by the property owner:

  • Property Management Company: Fully completed VOR
  • Private Landlord: Evidence of 12 months of payment history
  • Relative: Canceled checks/bank statements
  • Private VOR: Not allowed

Alternative methods of documenting payment history may be considered (EEP UW Matrix “Rental”).

A full home inspection is required.

Arrive Home™ does not have overlays on when the FHA first mortgage can be refinanced or paid off. Follow FHA guidelines.

For the second mortgage DPA, there are subordination limitations (CLG 8.2) that the borrower may want to consider. In essence, no Arrive Home™ second mortgage may be subordinated during the first 36 months of the loan, beginning with the first payment. A refinance or sale would force a payoff of the second mortgage. See the Correspondent Lending Guide for more details.

The borrower would first need to assume the FHA first mortgage and meet FHA guidelines before refinancing the property. Other conditions may apply.

Arrive Home™ does not have overlays and would accept the decision of the DE underwriter.

Arrive Home™ DPA is based off of the lower of the purchase price or appraised value. The DPA may be 3.5% or 5% of this amount, rounded up to the nearest whole dollar (CLG 3.1).

Neither Arrive Home™ DPA nor the Arrive Home™ EEP are ever closed in the name of Arrive Home™ directly. Loans are closed in the name of the retail lender/correspondent.

See the CLG or the EEP UW Matrix for more details.

Arrive Home™ DPA does not have overlays and would accept the decision of the DE underwriter.

Both are required with the EEP. Specifically, the EEP requires the previous year’s tax returns (documented as filed with the IRS, or executed tax stamps, required), a YTD P&L, and two months of bank statements (to document cash flow) (EEP UW Matrix “Self-Employed”).

No. Arrive Home™ DPA and the EEP are purchase-only programs.

Arrive Home™ does not have overlays and would accept the decision of the DE underwriter.

Arrive Home™ does not have overlays and would accept the decision of the DE underwriter.

Arrive Home™ DPA does not have overlays and would accept the decision of the DE underwriter.

Tax returns alone are not used to document income. Specifically, the EEP requires the previous year’s tax returns (documented as filed with the IRS, or executed tax stamps, required), a YTD P&L, and two months of bank statements (to document cash flow) (EEP UW Matrix “Self-Employed”).

Arrive Home™ DPA follows industry standards (middle of three, lower of two) using major credit bureaus (CLG 3.9).

At least one credit score from a major bureau may be used to qualify. Alternative credit (utilities, medical, or housing expense) may be considered (EEP UW Matrix “Consumer Credit History Guidelines”).

Borrowers with no credit score may be eligible with the following (EEP UW Matrix “Borrowers with No Credit Score”):

  • 12 months documented verification of housing history
  • Verified alternative credit tradelines (e.g. utility bills, other payment arrangements)

Arrive Home™ does not have overlays and would accept the decision of the DE underwriter.

A Letter of Explanation may be required. An acceptable reason must be documented for the move, along with the intent behind retaining the current property.

For a retained primary residence, the following is required (EEP UW Matrix “Primary Residence [REO]”):

  • Strong supporting documentation justifying the need to move and to obtain EEP financing
  • LOA
  • UW support and approval

In addition, the property must be leased at closing (with supporting lease agreement and evidence of deposit or rent received) if not pending sale.

For existing rental properties, the following is required (EEP UW Matrix “Rental Properties [REO]”):

  • 3 months reserves documented
  • Properties documented with lease agreements and receipt of rental income

In addition, the following overlays apply:

  • Minimum 600 credit score
  • 38/50% maximum PTI/DTI

Yes, EEP consumer applicants’ additional housing history will be considered in cases where the primary residence is free and clear, subject to acceptance of reasonable consumer occupancy. In addition, the taxes and insurance payments on the primary residence will also be considered to support consistent housing history.

No (CLG 3.9).

Borrowers with no credit score may be eligible with the following (EEP UW Matrix “Borrowers with No Credit Score”):

  • 12 months documented verification of housing history
  • Verified alternative credit tradelines (e.g. utility bills, other payment arrangements)

Yes (CLG 3.13) (EEP UW Matrix “Non-Occupant Consumers”).

For Arrive Home™ DPA, the borrower does own the loan, so the borrower would sign collateral documents in accordance with industry standards.

According to the terms of the contract-for-deed (Arrive Home™ EEP), the borrower is not listed on the note or the deed.

Under the terms of the contract-for-deed, the borrower is not the legal owner of the subject property until the loan is assumed or transferred to the consumer. Because of these terms, the borrower is not able to sell the property legally.

In community property states the non-purchasing spouse’s debt is considered, per FHA guidelines.

We will require a credit report for the non-purchasing spouse, and we will review for disqualifying credit events rather than additional debt (EEP UW Matrix “Non-Obligated Spouse”).

Follow FHA guidelines for self-employment history (2 years).

2 years are preferred, but a minimum of 12 months is required.

FHA Guidelines require a 2-year history of maintaining two jobs for qualifying income to be considered.

For the EEP, this is reviewed on a case-by-case basis.

When a P&L statement is required, it must be a recent, YTD accounting.

Yes, for both the DPA and EEP programs, co-signed debt can be excluded as long as payment history is provided showing the payments are not being made by the borrower.

Generally, the appraisal must be done in accordance with FHA guidelines. Subject-to appraisals require a 1004D/completion cert to confirm that repairs have been made (CLG 3.2) (EEP UW Matrix “Appraisal/Home Inspection”).

Utility payments are not required to be counted towards DTI.

Follow FHA guidelines for credit qualifying. There is not a minimum number of tradelines required—credit approval is based upon AUS review and acceptance.

For Arrive Home EEP, please see our UW matrix for tradeline requirements and UW detail (EEP UW Matrix “Consumer Credit History Guidelines”).

Exceptions may be considered. Reach out to your Corporate Account Director to discuss potential exceptions.

Yes, with specific limitations and requirements (EEP UW Matrix “Exceptions”).