This time, however, UWM increases its contribution cap – from a maximum of $ 4,000 in its previous version of the program to a new maximum of $ 7,000.
In practice, UWM will contribute the least of 2% of the value of the house or $ 7,000, while the borrower covers the remaining 1% or a shortage if the contribution of 2% of UW exceeds the limit.
UWM President and CEO Mat Ishbia said that the deposit is one of the “biggest obstacles for buying a house” and that the program “gets borrowers in a house with less money from their pockets.”
“This gives independent mortgage brokers a considerable competitive advantage, both with their customers and brokers this purchase season,” said Ishbia.
To be eligible, borrowers must earn on or below 80% of the average income of the area (AMI), have a minimum Fico score of 620 and a loan-to-value (LTV) ratio of 97%. The offer is immediately available, without a fixed expiry date, according to a spokesperson for UWM.
The product was last offered by UWM in May 2024. It follows Enterprise (GSE) guidelines sponsored by the government. UWM does not offer any details about rates, but the spokesperson confirmed that the company is financing the loans.
UWM noted that the help can free up funds for other costs, such as relocation costs, home repairs, furniture or even purchasing mortgage interest.
Although the range of UWM is striking because of the improved assistance limit, the structure is not new for industry.
Similar programs have been rolled out by other lenders over the years and are often bound Fannie MaeS Homeready And Freddie MacS Homepossible Programs, which also run 3% on conventional loans.
