UWM has raised its down payment assistance cap from $4,000 to $7,000, offering borrowers a chance to reduce upfront home-buying costs. The company will contribute whichever is lesser between 2% of the home's value or the new maximum. Qualifying borrowers must meet specific income and credit requirements, allowing them to allocate funds toward other essential expenses. UWM's initiative provides mortgage brokers with competitive leverage this season and follows similar trends in the industry, geared towards enhancing access to homeownership for lower-income individuals.
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.
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.
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%.
UWM noted that the assistance can free up funds for other expenses such as moving costs, home repairs, furniture or even mortgage rate buydowns.
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