Another lender announced plans to offer a low-down-payment mortgage recently when United Wholesale Mortgage said it will offer borrowers the chance to purchase homes with 1% down, reports HousingWire staffer Kelsey Ramirez.
Eligible home buyers are afforded a 2% lender-paid down payment that gives consumers 3% equity at closing.
Quicken Loans and Guaranteed Rate, in partnership with the City of Chicago and Chicago Infrastructure Trust, have also announced 1% down mortgage programs recently.
The 1% down program we’re introducing is a new alternative to the 3% down programs that already exist,” UWM President and CEO Mat Ishbia said. “It’s a conventional loan that is designed for people with a strong credit payment history who want to keep as much money in their wallet as possible when buying a home.”
“By introducing this conventional 1% down program to the wholesale space, we’re equipping mortgage brokers with a distinct competitive advantage in the market and a new way to help borrowers realize homeownership,” Ishbia said.