Arc Home · Delegated Correspondent Announcement Clean Slate Full/Alt Doc Product Update (2026-08-25) · Published

Maximum DTI Reduced from 55 to 50 Percent for Delegated Clean Slate Full and Alt Doc Loans

Arc Home has reduced the maximum debt-to-income ratio from 55 percent to 50 percent for delegated Clean Slate full and alternative documentation loans registered on or after August 20, 2026. Loans with debt-to-income ratios exceeding 50 percent are no longer eligible for delegated submission.

Action requiredEffective Aug 20, 2026Checks passed· adjusted automaticallyRead the announcement ↗ (opens in a new tab)

Loan impact

Summarized from the announcement · needs review

Applies to: Delegated correspondent Clean Slate full and alternative documentation loans.

Addressed to
Arc Home correspondent sellersFrom the publisher, not quoted from the text
Investor
ArchomeFrom the publisher, not quoted from the text
Affected area
Eligibility
Effective
Aug 20, 2026
Applicability confidence
Needs review: some rows could not be matched to a quote from the source

Summary by AWACS. Arc Home's guide is proprietary, so AWACS does not reproduce its text. Read the official announcement ↗ (opens in a new tab)

What changed

Summarized from the announcement
RequirementPreviouslyNow
Maximum debt-to-income ratio reduction from 55 percent to 50 percentTightenedRequiredPreviously: Debt-to-income ratios up to 55 percent were permitted, with ratios above 50 percent requiring an exception and capped at 75 percent LTV.Debt-to-income ratios are capped at 50 percent instead of the previous 55 percent maximum.

What to do

AWACS interpretation · not source language

What to review: Review the mandatory reduction of the maximum debt-to-income ratio ceiling from 55 percent to 50 percent for delegated Clean Slate full and alternative documentation loans.

Underwriting

Enforce the reduced maximum debt-to-income ratio limit of 50 percent on delegated Clean Slate full and alternative documentation loans effective August 20, 2026.

Secondary

Update delegated Clean Slate full and alternative documentation product guidelines to cap maximum debt-to-income ratios at 50 percent effective August 20, 2026.

QC implications

  • Test delegated Clean Slate full and alternative documentation loans registered on or after August 20, 2026, to ensure debt-to-income ratios do not exceed 50 percent.

Source and record

Version 2 · archived

Checks

  • Source verified: Passed

    The document ID, link and publication date match the official source.

  • Quotes match the source: Passed

    Every quoted passage appears word for word in the official document.

  • Requirements backed by the source: Passed, adjusted automatically

    Anything marked required is backed by the requirement language and dates in the source.

    • A detail the source does not support was removed or adjusted
    • An independent check could not confirm which loans a change applies to; those conditions were removed
  • In scope: Passed

    The document is about residential mortgage lending.

  • Format and labels: Passed, adjusted automatically

    The record follows the AWACS format and uses its standard labels.

    • A detail the source does not support was removed or adjusted

Version history

  1. Version 2 (current)
    Recorded
  2. Version 1
    Recorded