UWM Introduces 1% Down Payment

United Wholesale Mortgage is offering a 1% down payment product in a bid to bring in more borrowers.

The Conventional 1% Down allows buyers to pay 1% towards their new home. UWM will then pay an additional 2%, up to $4,000, for a combined 3% down payment.

“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.”

This is a limited-time offer exclusively for borrowers with an income at or below 50% of the area’s median income.

As inflation runs rampant and home prices remain high, many Americans have struggled to save for a down payment. 

Conventional wisdom says buyers should put down 20% in order to secure a low interest rate, but the average is 6%. Millennials buying their first homes are having to work second jobs, cut back on spending, and move in with family to set funds aside.

The product comes on the heels of a “one-time-close” new construction loan requiring just 5% down and a price enhancement program for brokers from UWM.

UWM surpassed Rocket Mortgage as the #1 overall mortgage lender in the U.S. last year. But the company faces backlash for its contentious broker ultimatum.

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