Last Updated on May 31, 2024 by The HD Post Staff
CALIFORNIA – United Wholesale Mortgage (UWM), formerly United Shore Financial Services, announced May 17 that they are offering a 0% Down Purchase program. UWM says the program allows brokers to help more borrowers get into a home right now with no down payment.
“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,” said UWM chief executive Mat Ishbia.
Ishibia went on to say that thousands of borrowers are sitting on the sidelines because they don’t have a downpayment – this program removes that barrier.
2nd mortgage
The company says the program provides qualified borrowers a 3% down payment assistance loan – up to $15,000.
The down payment assistance is a second lien that has no monthly payment requirement and no interest. The second lien balance is due when the first lien loan is refinanced or paid off, whichever comes first.
Monthly payment example
UWM provides a monthly payment example based on a principal, interest, and mortgage insurance payment of $350,000.
A 30-year fixed-rate loan at 6.75% and 97% loan-to-value (LTV) is a $2,270.09 monthly payment.
The company says the principal and interest payments, which will continue for 360 months until paid in full, do not include taxes and home insurance premium, which will result in a higher actual monthly payment.
According to Bankrate, the current average interest rate for a 30-year fixed mortgage is 7.17% as of May 31, 2024. A recent California Association of Realtors (CAR) report found that the average minimum income to qualify for a home in California is $208,400.
For more information about the 0% Down Purchase program click here.
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