United Wholesale Mortgage (UWM), the top overall U.S. mortgage lender, on Wednesday announced two new home-affordability products intended to help underserved borrowers buy homes.
Effective immediately, UWM is now offering a Special Purpose Credit Program (SPCP) for HomeReady, and offering the Freddie Mac BorrowSmart Geo-Targeted assistance program. The offerings will be available in select areas — including Detroit, Baltimore, and Chicago for Freddie Mac’s BorrowSmart, and Detroit, Baltimore, Chicago, Atlanta, Memphis, and Philadelphia for HomeReady SPCP.
Last year, the Consumer Financial Protection Bureau joined seven other federal agencies in issuing a statement encouraging lenders to "explore opportunities available to them" to increase credit access through SPCPs "to better serve historically disadvantaged individuals and communities."
Under UWM's programs, qualified buyers will receive up to $10,000 toward their down payment/closing costs with the Freddie Mac BorrowSmart Geo-Target Assistance program, or $5,000 toward their down payment/closing costs and up to $1,000 toward home warranty/appraisal costs with HomeReady SPCP.
The Freddie Mac BorrowSmart Geo-Target Assistance program is eligible for purchases of primary residences only and requires:
- A 620+ FICO score and up to 97% LTV; and
- At least one qualifying borrower to complete a homebuyer counseling session through Homeownership Preservation Foundation (HPF) Process for a fee of $99.
In addition, UWM said:
- Qualified buyers with an income less than or equal to 50% of the AMI receive $1,500.
- First-time homebuyers in the Detroit, Baltimore, and Chicago areas may be eligible for an additional $8,500 through BorrowSmart Geo-Target.
- Qualified buyers with an income between 50% and 80% of the AMI receive $500.
- First-time homebuyers in the Detroit, Baltimore, and Chicago areas may be eligible for an additional $8,250 through BorrowSmart Geo-Target.
- The program is available on single- and multi-wide manufactured homes, condos, and PUDs.
- Lender- and seller-paid Temporary Rate Buydowns are available.
The announcement follows the recent expansion of UWM’s Bank Statement loan options, which provide additional flexibility for independent mortgage brokers and their self-employed borrowers.
