down payment assistance that's blasting through one of the biggest hurdles to homeownership
One of the biggest challenges for first-time homebuyers right now is coming up with the down payment funds and closing costs. We're partnering with UWM to get as many first-time buyers into a home of their own as we can. With our 0% down program, First-Time Buyers can blast through the Down Payment hurdle with confidence. Many of the current down payment assistance programs are location specific or have income limits, which is a problem. With the rising need among first-time homebuyers for down payment assistance, our lender partner, UWM, decided to do something about it.
How the Program Works
The 0% Down Purchase program is straightforward and hugely beneficial for eligible homebuyers. Here's a breakdown of how it operates:
- First Lien Mortgage: The borrower secures a first lien mortgage in the form of a 97% conventional loan.
- Second Lien Mortgage: UWM provides a second lien mortgage for 3% of the purchase price, up to $15,000. This second lien comes with no monthly payment requirement and no interest.
- Repayment Terms: The balance on the second lien is due when the first lien loan is refinanced or paid off, whichever comes first. While borrowers have the option to make payments on the second lien throughout the loan term, they are not required to do so.
The Benefits
- No Down Payment: The most significant advantage is the elimination of the down payment, allowing more buyers to enter the housing market immediately.
- Competitive Terms: With no interest and no required monthly payments on the second lien, this program offers favorable terms that ease the financial burden on homebuyers.
- Increased Accessibility: Unlike most Down Payment Assistance programs, this is not location specific. Borrowers can purchase up to a $500,000 home without a down payment.
Empowering Homebuyers and Realtor Partners
Our 0% Down Purchase program is not only beneficial for borrowers but also a powerful tool for our real estate agent partners as well. By offering a solution that reduces the financial barrier to homeownership, agents can attract more clients, close more loans, and build stronger relationships.
If you’re ready to explore this unique opportunity and see if you or your client qualify for our 0% Down Purchase program, contact us today. Let’s make your dream of homeownership a reality without the hurdle of a down payment.
Information subject to change. Certain restrictions apply. Subject to approval of borrower and investor guideline requirements. Down payment is provided as a 2nd lien against the subject property. 2nd lien bears a 0% interest rate and cannot exceed a $15,000 loan amount. 2nd lien has no minimum monthly payment requirements, a term of 360 months and is fully due as a balloon payment upon the occurrence of either a refinance of the 1st lien, payoff of the 1st lien or the final payment of the amortization schedule of the 1st lien. Borrower must qualify based on Home Possible® or HomeOne® guidelines. Some exclusions may apply.
The principal, interest, and MI payment of a $350,000 30-year Fixed-Rate Loan at 6.75% and 97% loan-to-value (LTV) is $2270.09. The Annual Percentage Rate (APR) is 6.949% with estimated finance charges of $6,500. 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. Rates current as of 5/20/24. Subject to borrower approval. Some exclusions may apply.