Conventional 0% Down Payment Assistance Program

Conventional 0% Down Payment Assistance Program

The 0% Down Purchase Program from United Wholesale Mortgage (UWM) and Broker Partner with Texas Premier Mortgage is an exclusive down payment assistance program designed to help more borrowers achieve homeownership without the need for a down payment. This program follows Home Possible® guidelines, making it easier for underserved borrowers to qualify for a mortgage by taking advantage of Loan Level Price Adjustment (LLPA) caps. These caps help reduce the cost of the loan, making homeownership more affordable.

  1. Down Payment Assistance:
    • Borrowers receive a 3% loan up to $15,000 from UWM to cover the down payment. This assistance is provided as a second lien on the property.
    • The second lien does not require monthly payments and does not accrue interest. It is due in full as a balloon payment upon refinancing the first lien, paying off the mortgage, or making the final payment on the amortization schedule of the first lien [1].
  2. Eligibility and Guidelines:
    • The program follows Home Possible® guidelines, which means it is designed to help underserved borrowers achieve homeownership. Home Possible® price caps will apply.
    • The program is available for 30-year fixed primary purchases only.
    • Eligible property types include 1-unit single-family homes, PUDs, and condos. Manufactured homes are not eligible.
    • Borrowers must have a minimum FICO score of 620 and the maximum debt-to-income (DTI) ratio is determined by Loan Product Advisor (LPA) findings.
    • The maximum loan-to-value (LTV) ratio is 97%, and the maximum total loan-to-value (TLTV) ratio is 100%. The minimum LTV ratio is 95%.
    • The maximum loan amount is limited to conforming loan limits, and high balance loans are not eligible.
  3. Benefits:
    • This program allows borrowers to get into a home quicker without the need for a down payment, freeing up funds for home repairs or emergency savings.
    • By following Home Possible® guidelines, borrowers can take advantage of Loan Level Price Adjustment (LLPA) caps, making it easier for underserved borrowers to achieve homeownership.

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