January 30, 2024

Is a property in C5 condition acceptable for mortgage insurance with Arch?


A property appraised as-is in C5 condition due to minor deferred maintenance (normal wear and tear) may be acceptable provided the subject property’s safety, soundness and structural integrity are not impaired. The home’s building components should not be in need of repair, rehabilitation or updating and functional utility and overall livability should not be diminished due to its current condition. Condition items causing the C5 rating that are not minor deferred maintenance — and/or properties with a condition Rating of C6, Fair or Poor — must be appraised “subject to completion of repairs” and condition items must be corrected to improve the property to an acceptable rating. For more information, refer to the Arch MI Underwriting Manual (CU).

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