Frequently Asked Questions
Are there terms or definitions I should be aware of to help me understand these FAQs?
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.
Does Arrive Home™ down payment assistance for FHA Loans and the Arrive Home™ Earned Equity Program provide the same assistance?
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.
Are there property types approved by FHA that aren’t approved by Arrive Home™?
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).
Are there property types approved by FHA that aren’t approved by the EEP?
Yes. Second homes, investment properties, 3–4 units, and co-ops are not allowed (EEP UW Matrix “Property Eligibility”).
Is the homeowner’s insurance chosen by the borrower?
Arrive Home™ does not have overlays on homeowner’s insurance.
For self-employed borrowers who are schedule C, are personal bank statements allowed to support the P&L? (Arrive Home™)
Arrive Home™ DPA does not have overlays and would accept the decision of the DE underwriter.
For self-employed borrowers who are schedule C, are personal bank statements allowed to support the P&L? (EEP)
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”).
Will borrowers with no documented housing history be considered by Arrive Home™ DPA?
Yes. Our DPA program does not have overlays on housing history.
Will borrowers with no documented housing history be considered by the Arrive Home™ EEP?
No. 12 months of documented payment history (in good standing) is required (EEP UW Matrix “Housing History”).
Is installment debt less than 10 months included?
Arrive Home™ does not have overlays and would accept the decision of the DE underwriter.
Can debt be paid off to qualify?
Yes.
Can the borrower sell a property purchased through Arrive Home™ DPA?
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.
Can the borrower sell a property purchased through the Arrive Home™ EEP?
The borrower would first need to assume the FHA first mortgage and meet FHA guidelines before selling the property. Other conditions may apply.
Is there a specific entity that the borrower is required to get a home inspection through?
Arrive Home™ does not have overlays and would accept any licensed home inspector or other home inspection that meets relevant Agency guidelines.
On tax liens or a collection/judgment, what if the payment amount showing on the credit report is the same as the balance? (Arrive Home™ DPA)
Arrive Home™ DPA does not have overlays and would accept the decision of the DE underwriter.
On tax liens or a collection/judgment, what if the payment amount showing on the credit report is the same as the balance? (Arrive Home™EEP)
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”).
What if the borrower doesn’t have a business license?
Arrive Home™ does not have overlays and would accept the decision of the DE underwriter.
To track housing payment for the EEP, can the borrower use a VOR filled out by the landlord?
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”).
Is a full home inspection, with termite inspection, required?
A full home inspection is required.
Can the borrower refinance an FHA loan with Arrive Home™ DPA?
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.
Can the borrower refinance an FHA loan with the Arrive Home™ EEP?
The borrower would first need to assume the FHA first mortgage and meet FHA guidelines before refinancing the property. Other conditions may apply.
What if the SS number on the W2 and pay stubs is different?
Arrive Home™ does not have overlays and would accept the decision of the DE underwriter.
What is the Arrive Home™ DPA amount based off of?
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).
Are loans closed under Arrive Home™’s name?
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.
Can we use the profit and loss statement or a 12-month bank statement to calculate income for self-employed borrowers? (Arrive Home™ DPA)
Arrive Home™ DPA does not have overlays and would accept the decision of the DE underwriter.
Can we use the profit and loss statement or a 12-month bank statement to calculate income for self-employed borrowers? (Arrive Home™ EEP)
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”).
May either program be used for refinance?
No. Arrive Home™ DPA and the EEP are purchase-only programs.
For transfers and relocations, what is acceptable to verify future income?
Arrive Home™ does not have overlays and would accept the decision of the DE underwriter.
Are seller concessions allowed?
Arrive Home™ does not have overlays and would accept the decision of the DE underwriter.
What if the borrower is self-employed and his tax returns show very little profit? (Arrive Home™ DPA)
Arrive Home™ DPA does not have overlays and would accept the decision of the DE underwriter.
What if the borrower is self-employed and his tax returns show very little profit? (Arrive Home™ EEP)
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”).
What credit bureau is used to qualify for Arrive Home™ DPA?
Arrive Home™ DPA follows industry standards (middle of three, lower of two) using major credit bureaus (CLG 3.9).
What credit bureau is used to qualify for the Arrive Home™ EEP?
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)
What is the maximum number of borrowers allowed on the loan?
Arrive Home™ does not have overlays and would accept the decision of the DE underwriter.
What is required if the borrower wants to rent the departing residence, or has an existing rental property? (Arrive Home™ DPA)
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.
What is required if the borrower wants to rent the departing residence, or has an existing rental property? (Arrive Home™ EEP)
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
For EEP housing payment requirements, if the borrower’s primary residence is owned free and clear but the borrower makes monthly payments on an additional REO, can that payment be used to meet the monthly housing obligation?
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.
Will borrowers with no credit score be accepted? (Arrive Home™ DPA)
No (CLG 3.9).
Will borrowers with no credit score be accepted? (Arrive Home™ EEP)
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)
Are non-occupant co-borrowers allowed?
Yes (CLG 3.13) (EEP UW Matrix “Non-Occupant Consumers”).
If the borrower does not own the loan, does that mean the borrower is not owner of the deed either? (Arrive Home™ DPA)
For Arrive Home™ DPA, the borrower does own the loan, so the borrower would sign collateral documents in accordance with industry standards.
If the borrower does not own the loan, does that mean the borrower is not owner of the deed either? (Arrive Home™ EEP)
According to the terms of the contract-for-deed (Arrive Home™ EEP), the borrower is not listed on the note or the deed.
Since the borrower is not on title (for the Arrive Home™ EEP), what happens if the borrower decides to sell in 3 years?
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.
Do we include non-purchasing spouse debt? Does this file have a MIP? (Arrive Home™ DPA)
In community property states the non-purchasing spouse’s debt is considered, per FHA guidelines.
Do we include non-purchasing spouse debt? Does this file have a MIP? (Arrive Home™ EEP)
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”).
Is there a minimum timeframe for self-employment income? (Arrive Home™ DPA)
Follow FHA guidelines for self-employment history (2 years).
Is there a minimum timeframe for self-employment income? (Arrive Home™ EEP)
2 years are preferred, but a minimum of 12 months is required.
If the borrower has more than one job, how long must the borrower hold an additional job to include the income? (Arrive Home™ DPA)
FHA Guidelines require a 2-year history of maintaining two jobs for qualifying income to be considered.
If the borrower has more than one job, how long must the borrower hold an additional job to include the income? (Arrive Home™ EEP)
For the EEP, this is reviewed on a case-by-case basis.
How updated does a profit and loss statement have to be?
When a P&L statement is required, it must be a recent, YTD accounting.
Say the borrower co-signed for someone else. If that someone makes the payments and we can prove it, can those payments be excluded from the borrower DTI?
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.
Who is responsible for verifying that repairs on home inspections were made?
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”).
Can self-reported utilities be excluded from DTI?
Utility payments are not required to be counted towards DTI.
Is there a minimum number of trade lines on the credit report, and months on the trade lines? (Arrive Home™ DPA)
Follow FHA guidelines for credit qualifying. There is not a minimum number of tradelines required—credit approval is based upon AUS review and acceptance.
Is there a minimum number of trade lines on the credit report, and months on the trade lines? (Arrive Home™ EEP)
For Arrive Home EEP, please see our UW matrix for tradeline requirements and UW detail (EEP UW Matrix “Consumer Credit History Guidelines”).
Are exceptions considered? (Arrive Home™ DPA)
Exceptions may be considered. Reach out to your Corporate Account Director to discuss potential exceptions.
Are exceptions considered? (Arrive Home™ EEP)
Yes, with specific limitations and requirements (EEP UW Matrix “Exceptions”).