Following the news that government-sponsored enterprises Fannie Mae and Freddie Mac are launching new programs allowing lenders to offer financing of up to 97% loan-to-value (LTV) on certain mortgages, United Wholesale Mortgage (UWM) has re-introduced its 3% down product geared for first-time home buyers.
Loans originated for Fannie Mae's new program, which is now in effect, must have been underwritten using the newest version of Fannie Mae's Desktop Underwriter.
Freddie Mac's 97% LTV program does not go into effect until March.
UWM says these low-down-payment loans will help real estate agents serve more first-time and lower-income buyers by lifting the significant barrier of a large (typically 20%) down payment.
It also means borrowers who have traditionally been forced into government loans now have the opportunity to obtain conventional financing.
‘Immediately after Fannie Mae released version 9.2 of Desktop Underwriter, we had the opportunity to reintroduce this program given Fannie's changes, and we're the first wholesale lender in the country to make it available,’ says Mat Ishbia, president and CEO of UWM, in a release. ‘We always strive to give our partners a competitive advantage.Â Being first to market allows UWM's partners to get many consumers into loans that are more affordable. Our robust technology and extensive training, in part, enables us to turn on a dime and continually expand our product offerings.’
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