HousingWireHousingWire
United Wholesale Mortgage (UWM) has relaunched its 1% down payment program, Conventional 1% Down, in a renewed push to grow market share and loan volume in an increasingly competitive housing market.
The program, announced on Wednesday, enables eligible borrowers to put down 1% on a home purchase, with UWM covering the remaining 2% of the standard 3% minimum down payment on a conventional loan.
This time, however, UWM is increasing its contribution cap — from up to $4,000 in its previous version of the program to a new maximum of $7,000.
In practice, UWM will contribute the lesser of 2% of the home’s value or $7,000, while the borrower covers the remaining 1% or any shortfall if UWM’s 2% contribution exceeds the cap.
UWM president and CEO Mat Ishbia said that the down payment is one of the “biggest hurdles to buying a home” and that the program will get borrowers “into a home sooner with less money out of their pockets.”
“This gives independent mortgage brokers a significant competitive advantage both with their clients and real estate agents this purchase season,” Ishbia said.
To qualify, borrowers must earn at or below 80% of the area median income (AMI), have a minimum FICO score of 620, and a loan-to-value (LTV) ratio of 97%. The offering is available immediately, with no set expiration date, according to a UWM spokesperson.
The product was last offered by UWM in May 2024. It follows government-sponsored enterprise (GSE) guidelines. UWM does not provide specifics on rates but the spokesperson confirmed the company is funding the loans.
UWM noted that the assistance can free up funds for other expenses such as moving costs, home repairs, furniture or even mortgage rate buydowns.
While UWM’s offering stands out for its enhanced assistance limit, the structure is not new to the industry.
Similar programs have been rolled out by other lenders over the years, and are often tied to Fannie Mae‘s HomeReady and Freddie Mac‘s HomePossible programs, which also allow for 3% down on conventional loans.
