United Wholesale Mortgage (UWM) announced the launch of its
new “0% Down Purchase,” a program that allows borrowers to purchase a home
without a down payment. UWM is the largest mortgage lender in the country and hosts
the largest annual mortgage broker event, UWM Live!, which is where it
announced its new zero-down mortgage offering.
The program enables qualified borrowers to receive a 3 percent
down payment assistance loan up to $15,000 from UWM. This loan does not accrue
interest and does not require a monthly payment and is assessed as a second
lien loan against the property, according to a company press release.
To be eligible for the program, borrowers must be at or
below 80 percent of the Area Median Income for the address of the property they
are buying or one borrower is a first-time homebuyer.
“UWM’s 0% Down Purchase program is going to change the game
this purchase season,” UWM President and CEO Mat Ishbia said in the release.
“No other wholesale lender in the country is offering this, meaning independent
mortgage brokers now have a significant advantage with consumers and real
estate agents. Thousands of borrowers are sitting on the sidelines because they
don’t have a downpayment – this program removes that barrier.”
UWM also said borrowers will have the flexibility to choose
the timing and method of making payments on the second lien loan, which must be
paid in full by the end of the loan term, or if the first lien loan is paid
off.