length

When does Arch consider a transaction to be non-arm’s length?

Non-arm’s length transactions are purchase transactions in which there is a relationship or business affiliation between the seller and the buyer of the property.  Arch allows non-arm’s length transactions for the purchase of existing properties unless specifically forbidden for the particular scenario, such as delayed financing.  For the purchase of newly constructed properties, if the borrower has a relationship or business affiliation (any ownership interest, or employment) with the builder, developer, or seller of the property, only the purchase of a primary residence would be acceptable; second home or investment property would be not be eligible.