United Wholesale Mortgage (UWM) has debuted Conventional 1% Down, a product designed to enable homebuyers to purchase a home with a down payment of only 1% contributed by the borrower.
According to the Pontiac, Michigan-based company, when a borrower puts 1% down with this product, UWM will pay an additional 2%, up to $4,000, giving the borrower a total of 3% for their down payment. The goal is to allow more homebuyers to reach their minimum down payment faster and easier, with UWM providing the additional funds for borrowers to achieve 3% percent equity at the start of their loan.
The new product is a limited offer available for homebuyers who have an income at or below 50% of the Area Median Income and a 97% LTV.
“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. “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.”
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