By role
For loan officers
The hard numbers, the exception paths, and the fee caps you have to respect.
What this product actually solves
It is not a down payment assistance second. It is a purchase where a governmental entity is the borrower on an FHA 203(b) and your client signs a seller financing agreement with that entity. The seller financing agreement is not part of the FHA loan and is a separate relationship.
Your lender has to be an approved correspondent of Arrive Home before you can originate it.
The published standards
Credit
Middle of three, lower of two, tri-merged bureau.
Matrix 3.5Requires strong compensating factors. Possible, not automatic.
Matrix 3.5.1Alternative tradeline histories may be considered.
Matrix 3.5Must be recorded on the credit report.
Matrix 3.5.4Some exceptions may apply.
Matrix 3.5.5Debt to income
Above 50 needs strong compensating factors.
Matrix 3.6Assets and reserves
With no exceptions in the file, only the 3.5% is verified before closing.
Matrix 3.7, 3.7.1Assets must be liquid at closing.
Matrix 3.7.2Gifts of equity are not permitted.
Matrix 3.7.3Housing history
VOR, private landlord VOR, or Venmo, Zelle, PayPal if documented.
Matrix 3.8, 3.8.1Unless modified requirements can be met.
Matrix 3.8Documented by credit report.
Matrix 3.8.2Income
Calculated per FHA and industry standards.
Matrix 3.9ITIN with a third-party SSN on the W2 needs 3 months of bank statements. Net deposits may be grossed up.
Matrix 3.9.1Less than 12 months of self-employment may not be eligible.
Matrix 3.9.4, 3.9.2Minus net loss, then the expense ratio applies.
Matrix 3.9.5Only if the EEP home has more than one unit and the vacant unit is rented.
Matrix 3.9.9Legal status
Green card and SSN.
Matrix 3.4With documented proof of ability to repay.
Matrix 3.4Stated explicitly in the matrix.
Matrix 3.4Separate product matrix.
EEP EAD v1.1Fee rules you cannot get wrong
Total origination and Section A fees may not exceed 3% of the purchase price, and discount points that are not bona fide count against that 3%.
Charges on the seller financing agreement that benefit the originator beyond what TRHEEA charges must be less than or equal to 1% of the total FHA loan amount, and they get added as a Program Participation Percentage line on the Initial Homebuyer Cost Disclosure.
You may never disclose a CCD to the homebuyer that was not provided by Arrive Home.
Source: Matrix 3.15.1, 3.15.2, 3.15.3.
Exceptions
Below 580, no score, and income or DTI exceptions are requested by email to your corporate account director and to the Arrive Home exceptions desk. Exceptions need strong compensating factors and they are not a formality. Do not sell an exception to a client as if it were an approval.
Also note: if a file has any exception, all cash to close and reserves must be verified in the homebuyer's account before closing, plus a letter of explanation sourcing the funds. Without exceptions, only the 3.5% minimum gets verified.
Source: Matrix 3.19, 3.7.1.
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