Our biggest wholesale lender, United Wholesale Mortgage (UWM), recently announced that they are allowing partners to offer a 1% down payment for first-time home buyers’ mortgages. We have seen many borrowers benefit from this mortgage program. The program does initially require a 3% down payment, but UWM will grant an additional 2%, meaning a borrower can now purchase a home with only 1% down (up to $4,000) on a purchase price.
However, there are some requirements a borrower must meet, including a maximum income limit and having a credit score above 620, and it cannot apply to the purchase of manufactured homes. The program also enables borrowers to afford monthly mortgage payments at lower rates. This 1% down payment is only offered by UWM, so only some lenders like us at Indigo Mortgage have access to it.
This is an excellent opportunity for first-time home buyers and can help to take the edge off the interest rates and money required for down payments. One thing to note is that the borrower will still have to cover closing costs, so borrowers must account for those. If you’re in the market to purchase a home in New Mexico, we invite you to schedule an appointment with us. We can assist you in creating a plan and conducting an assessment to determine your eligibility for the 1% down program. We’ll also provide you with a breakdown of the closing requirements.
We’ve been helping homeowners purchase homes in the Albuquerque and Rio Rancho area and all of New Mexico since 2003. We’re here to help make your next mortgage loan work for you!