United Wholesale Mortgage in Troy, Mich., has begun offering a conventional 1% down payment program to mortgage brokers. This program is going after a higher credit quality borrower than other low down payment programs available.
To bring these mortgages down to a 97% loan-to-value ratio, the company will provide eligible homebuyers with a 2% lender-paid down payment.
The program is available to buyers in all 50 states who have a minimum FICO score of 700 and a maximum debt-to-income ratio of 43%. In comparison, Wells Fargo's youFirst Mortgage has a minimum FICO of 620; Wells Fargo does not originate loans through mortgage brokers.
"The 1% down program we're introducing is a new alternative to the 3% down programs that already exist. 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," United Wholesale President and Chief Executive Mat Ishbia said in a press release.
