Summary:
The housing market remains challenging for many prospective homeowners, especially when it comes to saving for a down payment. United Wholesale Mortgage (UWM) has introduced the Conventional 1% Down purchase program, allowing eligible borrowers to pay just 1% of the home’s value at closing, with UWM covering an additional 2% as a non-repayable grant. This initiative aims to reduce financial barriers, helping homebuyers secure their dream homes sooner. For independent mortgage brokers, this program offers a competitive edge in a tough market.
What This Means for You:
- Reduce the financial burden of homebuying by leveraging UWM’s 1% Down program for your clients.
- Encourage borrowers to allocate saved funds toward move-in expenses, repairs, or furnishings.
- Strengthen your value proposition to real estate agents by offering innovative financing solutions.
- Stay ahead in a competitive market by adopting programs that simplify the path to homeownership.
Original Post:
No one likes waiting to get into the home of their dreams. While many prospective homeowners have been biding their time for weeks, months, even years waiting for the market to shift, many challenges aren’t going away — especially the burden of saving thousands of dollars for a down payment. Fortunately, if you’re an independent mortgage broker, you have access to several down payment solutions for your borrowers.
One solution you can start offering today
As an industry professional, you know that most borrowers don’t need to bring the full 20% of the purchase price as a down payment at closing. But did you know that number can go as low as 1%? Now, United Wholesale Mortgage offers a Conventional 1% Down purchase program to homebuyers who meet certain income requirements. With this program, borrowers pay just 1% of the home’s value at closing, while UWM covers the additional 2%, up to $7,000. This additional 2% is considered a down payment assistance grant and doesn’t need to be repaid by the borrower at any point, which helps their down payment money go even further.
UWM President and CEO Mat Ishbia acknowledged that saving for a down payment is a serious hurdle for homebuyers. “We’re removing that barrier with this product,” he said. “(Conventional 1% Down) is a win for borrowers and will get them into a home sooner with less money out of their pocket. This gives independent mortgage brokers a significant competitive advantage with their clients and real estate agents this purchase season.”
Free up funds for other important spending
By shrinking the amount they’ll need to save for their down payment, you’ll help your borrowers free up extra money that can really come in handy when buying a home. Some common expenses borrowers could use their savings for:
• Furniture or appliances for their new home
• Move-in costs
• Repairs to the home
The right partner makes all the difference
In today’s ultracompetitive housing market, programs like Conventional 1% Down cut through the confusion and make the path to ownership even easier for homebuyers.
Are you a loan originator looking for more products and advantages? Join UWM’s network. If you’re a real estate agent, visit Mortgage Matchup to connect with a local home loan expert today.
*The principal, interest and MI payment on a $200,000 30-year Fixed-Rate Loan at 6.50% and 97% loan-to-value (LTV) is $1,324.14. The Annual Percentage Rate (APR) is 7.059% with estimated finance charges of $5,600. 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 7/14/25. UWM pays the lesser of 2% or $7,000 of the down payment. Borrower pays 1% of the down payment (or remaining down payment needed if 2% exceeds $7,000). Subject to borrower approval. Some exclusions may apply.
Extra Information:
How Down Payment Assistance Programs Work – A detailed guide on down payment assistance programs and their benefits. CFPB’s Homebuying Resources – Consumer Financial Protection Bureau’s tools and tips for homebuyers.
People Also Ask About:
- What is the Conventional 1% Down program? – A UWM initiative allowing borrowers to pay 1% down, with UWM covering an additional 2%.
- Who qualifies for down payment assistance? – Borrowers meeting specific income requirements are eligible.
- Can down payment grants be repaid? – No, UWM’s 2% grant does not require repayment.
- How can brokers benefit from this program? – It offers a competitive edge by reducing barriers for clients.
- What other costs should homebuyers consider? – Move-in expenses, repairs, and furnishings are common.
Expert Opinion:
UWM’s Conventional 1% Down program is a game-changer in the mortgage industry, addressing a critical pain point for homebuyers. By reducing upfront costs, it empowers more individuals to achieve homeownership, while brokers gain a strategic advantage in a competitive market. This innovation reflects a broader trend toward financial inclusivity in housing.
Key Terms:
- Conventional 1% Down program
- Down payment assistance grants
- Mortgage broker competitive advantage
- Homebuying financial barriers
- United Wholesale Mortgage solutions
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