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Conventional 0% Down Payment Program

Conventional 0% Down Payment 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.

0 Down Program

Key Benefits:

  • No Down Payment Required: Borrowers can get into a home quicker without the need for a down payment, allowing them to use their savings for home repairs or emergencies.
  • Second Lien Assistance: UWM provides a 3% loan up to $15,000 as a second lien. This second lien does not require monthly payments and does not accrue interest. It is due in full as a balloon payment upon refinancing, payoff, or the final payment of the first lien’s amortization schedule.

Program Parameters:

  • Loan Type: 30-year fixed primary purchases only.
  • Property Types: 1-unit single-family homes, PUDs, and condos. Manufactured homes are not eligible.
  • Down Payment Assistance: Covers up to the lesser of 3% or $15,000 of the down payment. This assistance cannot be used for closing costs.
  • Eligibility: Only available to borrowers with income at or below 80% of the Area Median Income (AMI). No first-time homebuyer requirements, but homeownership education is required if all borrowers are first-time homebuyers.
  • Credit Requirements: Minimum FICO score of 620.
  • Debt-to-Income (DTI) Ratio: Determined by Loan Product Advisor (LPA) findings.
  • Loan-to-Value (LTV) Ratios: Minimum LTV of 95%, maximum LTV of 97%, and maximum Total Loan-to-Value (TLTV) of 100%.
  • Loan Amount: Conforming loan limits apply; high balance loans are not eligible.
  • Lock Period: Maximum of 90 days.
  • Additional Features: Temporary Rate Buydowns

Additional Considerations:

  • Second Lien Terms: The second lien is due in full as a balloon payment upon refinancing, payoff, or the final payment of the first lien’s amortization schedule. There are no required monthly payments, and the second lien does not accrue interest.
  • Non-Occupying Co-Borrowers: Permitted up to 95% LTV.
  • Recast Eligibility: Based on investor guidelines and subject to approval upon the borrower’s request. If the borrower has PMI and wants it removed, a separate request will need to be submitted for review.

For more information about the 0% down loan program, please get in touch with us directly or submit the “Quick Quote” form on the right side of this page.