Mortgage lender · Baltimore, MD · LEI 54930048P8RWCQHQM310

Arc Home review: approval odds, rates and grade (2025)

Arc Home earns a C, in line with the typical performance of investment-property lenders. It turned down 15.9% of the applications it decided on in 2025, which ranks in the 15th percentile for approval odds. Its median loan was priced 0.77 points above the average prime offer rate, ranking in the 65th percentile on pricing. Compared against 220 investment-property lenders using 2025 HMDA filings.

5.4kApplications2025
57.6%Originatedof applications
15.9%Decision denial ratenational 22.6%
7.13%Median ratenational 6.63%
$1.8BLoan volume50 states

Arc Home at a glance, 2025

Every figure is from the lender's own HMDA filing. "vs national" compares with all lenders combined.

11.0%Denial rate (all applications)-6.95 pts vs national
15.9%Denial rate (decided applications)-6.69 pts vs national
57.6%Origination rate-0.46 pts vs national
30.0%Withdrawn by applicant
0.6%Closed for incompleteness
7.13%Median interest rate+0.50 pts vs national
0.77Median rate spread (pts over APOR)+0.51 pts vs national
$465,000Median loan amount
$11,329Median total loan costs
$256kMedian applicant income
75%Median loan-to-value
0High-cost (HOEPA) loans

How the C grade breaks down

Each component is a percentile rank among 220 investment-property lenders. Higher is better. Components the lender does not report are left out and the weights redistributed.

Approval oddsdecision denial rate, weight 45%

15th15.9% denied

Pricingmedian rate spread over APOR, weight 30%

65th0.77 pts

Processwithdrawn + incomplete share, weight 15%

6th30.6%

Closing coststotal loan costs ÷ loan amount, weight 10%

66th2.44% of loan

Trend, 2023–2025

YearApplicationsOriginatedDenial rateDecision denialMedian rateVolume
20234,6692,44717.9%25.2%7.63%$1.1B
20245,2132,84212.5%18.4%7.38%$1.6B
20255,4393,13111.0%15.9%7.13%$1.8B

What Arc Home lends

Applications by purpose and loan type in 2025, with the denial rate for each. A lender's mix explains a lot of its headline rate: HELOCs and FHA loans are denied far more often than conventional purchase loans.

By loan purpose

Home purchase 2,921 54% · 9.9% denied
Refinance 780 14% · 12.4% denied
Cash-out refinance 1,738 32% · 12.3% denied

By loan type

Conventional 5,388 99% · 10.9% denied
FHA 50 1% · 26.0% denied
USDA / RHS 1 0% · 100.0% denied

Also: 0 home-equity lines, 0 reverse mortgages, 1 manufactured homes, 3,039 investment properties.

Why Arc Home denies applications

Primary reason reported for each of the 600 denials in 2025. Lenders can cite up to four reasons; this is the first one listed.

Other 156 26%
Collateral 132 22%
Debt-to-income ratio 130 22%
Unverifiable information 54 9%
Incomplete application 53 9%
Credit history 29 5%
Employment history 24 4%
Insufficient cash 22 4%

How these reasons compare nationally →

Who gets approved at Arc Home

Decision denial rate by applicant profile. Groups with fewer than 20 applications are omitted.

Applicant incomeApplicationsOriginatedDecision denial rate
Under $50k1192048.8%
$50k – $100k31115426.2%
$100k – $150k42824617.6%
$150k – $250k70839119.5%
Over $250k1,62796114.5%
Applicant ageApplicationsOriginatedDecision denial rate
Under 25633711.9%
25–3465736417.6%
35–441,57492815.0%
45–541,60793917.1%
55–641,00557714.4%
65–7438121711.7%
Over 741476529.0%

Where Arc Home lends

50 states and 634 counties in 2025. Click a state for the lender's full record there.

StateApplicationsOriginatedDenial rateMedian rateRank in state
California92050411.6%7.00%#184
New York8845038.5%6.99%#101
Florida68338013.5%7.25%#199
Texas45324013.7%7.13%#281
New Jersey3602319.2%7.25%#144
Massachusetts1841106.0%7.38%#170
Arizona1711177.6%7.13%#190
Maryland1648915.9%7.13%#181
Connecticut1551085.8%7.25%#131
Pennsylvania1398312.2%7.50%#334
Virginia134699.7%7.25%#255
Colorado1338611.3%6.88%#207
Rhode Island986210.2%7.75%#70
Ohio915312.1%7.50%#339
Utah895611.2%7.63%#137
Washington864811.6%6.88%#251
Georgia803113.8%7.25%#369
North Carolina74399.5%7.13%#351
Illinois573615.8%7.50%#437
Oregon533513.2%7.13%#216
South Carolina50348.0%7.25%#339
Tennessee482810.4%7.00%#416
Alabama41252.4%7.25%#331
Hawaii37198.1%6.88%#102
Indiana32229.4%7.50%#406
Michigan28147.1%7.38%#398
New Hampshire22129.1%7.31%#182
Nevada171017.7%6.94%#284
Arkansas1397.7%7.50%#317
Idaho1298.3%7.38%#257
Oklahoma12625.0%6.81%#388
Montana11427.3%6.75%#169
District of Columbia10540.0%7.00%#179
Kansas10440.0%7.19%#353
Kentucky1090.0%7.25%#422
Louisiana850.0%7.00%#391
Maine8412.5%7.50%#238
Minnesota8425.0%6.88%#494
Missouri8312.5%6.88%#540
Delaware750.0%7.00%#273
New Mexico7328.6%7.88%#282
Wisconsin7342.9%7.50%#526
Mississippi540.0%7.94%#337
Vermont5320.0%8.25%#145

Frequently asked questions

Arc Home denied 15.9% of the applications it decided on in 2025. The national figure across all lenders was 22.6%. On approval odds it ranks in the 15th percentile of investment-property lenders.

The most common reason Arc Home gave in 2025 was "other", cited on 26.0% of its denials. Lenders report up to four reasons per denial to the CFPB; the full breakdown is on this page.

The median interest rate on loans Arc Home originated in 2025 was 7.13%, and its median rate spread over the average prime offer rate was 0.77 points. Rates on this page are what borrowers actually got, not advertised rates.

In 2025, 54% of its applications were for home purchases, 46% for refinancing (including cash-out), and 0% for home improvement or other purposes. By loan type: 99% conventional, 1% FHA, 0% VA.

Every figure on this page comes from the Home Mortgage Disclosure Act (HMDA) Loan/Application Register published by the CFPB, which lenders are required by federal law to file. We add the grade and the comparisons; we do not add facts.

About this data. HMDA data is published once a year by the CFPB. The current release covers applications acted on in calendar year 2025. Figures describe applications the lender acted on, including loans it later sold. Interest rates and costs are medians on originated loans only; some depository institutions are exempt from reporting pricing fields, which is why a few cells read "—". MortgageGrades is not affiliated with Arc Home. Data sources · Methodology