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Will Arch allow the payoff of a non-purchase money second lien as a rate/term refinance?
-Will Arch allow the payoff of a non-purchase money second lien as a rate/term refinance?
Under our Standard Program, Arch MI will allow the payoff of an existing second lien seasoned for a minimum of 12 months to be considered as a rate/term refinance. The 12 months’ seasoning will be measured from the note date of the existing subordinate financing to the application date of the new loan. If the subordinate lien is a Home Equity Line of Credit (HELOC), total draws for the last 12 months may not exceed $2000 (a loan history for the last 12 months is required to document total draws).
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Does Arch MI insure manually underwritten cash out refinance transactions?
-Does Arch MI insure manually underwritten cash out refinance transactions?
Yes! Our Standard program allows manually underwritten cash-out refinances for primary residence 1-unit properties, up to 95% LTV with minimum 660 score. Maximum loan amount is $679,650 and DTI may not exceed 45%; the maximum amount of cash out varies by LTV. The following are ineligible for a cash-out refinance transaction: Construction-to-permanent loans; Renovation mortgages; loans with new subordinate financing; properties purchased or listed for sale in the last 6 months; manufactured homes; non-traditional credit. Additional guidelines apply and are available in our Guideline Manual: https://mi.archcapgroup.com/Portals/1/Documents/Guidelines/ArchMI_UWManual_NR.pdf
