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For new construction, what amount should be used for property taxes in the PITI/DTI calculation?
-For new construction, what amount should be used for property taxes in the PITI/DTI calculation?
For new construction, the lender must use a reasonable estimate of the real estate taxes based on the value of the land and “as completed” improvements.
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Will Arch allow a Non-Occupant borrower on a Construction to Permanent Loan?
-Will Arch allow a Non-Occupant borrower on a Construction to Permanent Loan?
Yes, Arch is happy to consider a Construction to Permanent loan with a Non-Occupant borrower on a 1-unit primary residence at 95% LTV with a maximum loan amount of $850,000. The loan is qualified using the income, liabilities, and assets of all borrowers.
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Is updated credit documentation required at conversion for a One-Time Close Construction to Permanent certificate?
-Is updated credit documentation required at conversion for a One-Time Close Construction to Permanent certificate?
For One-Time Close Construction-to-Permanent Loans, the age of documentation is calculated using the original Note date at the time the loan originally closed. Supporting documents (income, assets, credit and appraisal) must be dated within 120 days of the Note date. Provided the supporting documents meet this requirement, updated loan documents would not be required at the time of conversion/modification of the loan. Section 3.05.01 of our Underwriting Guidelines provides this information. https://mi.archcapgroup.com/Portals/1/Documents/Guidelines/ArchMI_UWManual_NR.pdf
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What does Arch MI require in order to activate a Construction to Permanent Certificate?
-What does Arch MI require in order to activate a Construction to Permanent Certificate?
Please contact our Policy Servicing team at policyservicing@archmi.com for information on activating a certificate for a construction loan.
