Loan product aims to give homebuyers a 3% equity boost
United Wholesale Mortgage has rolled out a loan program that lets borrowers purchase a home with a 1% down payment.
UWM has brought back its Conventional 1% Down loan, a program that allows homebuyers to put in a 1% downpayment, the lender announced Wednesday. UWM will provide a 2% lender-paid downpayment (up to $4,000) for eligible borrowers, allowing them to achieve a 3% equity at closing.
The Pontiac, Mich.-based company said the goal of this product is to allow more homebuyers to reach their minimum down payment faster and easier, providing them a 3% equity boost.
“We are bringing back the Conventional 1% Down to give independent mortgage brokers a competitive edge with borrowers and real estate agents while also helping make homeownership more affordable and accessible for borrowers across the country,” said Mat Ishbia, president and CEO of UWM.
The loan program will be available for a limited time for homebuyers with an income at or below 50% of the Area Median Income (AMI) and a 97% LTV.
“We’re going to continue developing products and solutions that will help get more borrowers into homes faster, easier and cheaper, and Conventional 1% Down is a great example of how we’re doing that,” Ishbia added.
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