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United Wholesale Mortgage (UWM) continues to expand its mortgage products, today announcing it will offer two different home equity lines of credit (HELOCs).
The Detroit-based lender also announced it will raise its VA jumbo loan limit to $4 million.
Effective immediately, UWM will provide both Standalone and Piggyback HELOCs, creating additional flexibility and convenience for independent mortgage brokers and their borrowers, it said in a news release.
Standalone HELOCs offer current homeowners a way to tap into their home’s equity, particularly when a cash-out refinance doesn’t make sense due to having a low interest rate on their current mortgage, UWM said.
Standalone HELOCs are a popular option for homeowners looking to access cash to consolidate and pay down debt, allocate money to home improvements, or cover life events, UWM said. Standalone HELOCs are available on primary and second home loans as 20-year loans, in amounts up to $350,000.
A minimum 640 FICO score is required, as is a $25,000 minimum credit line, UWM said. According to UWM’s product page, the initial draw must be 75% of the credit line. For line amounts up to $250,000, only an approved automated valuation model (AVM) is required. For amounts over $250,000, a full appraisal is required.
Piggyback HELOCs allow qualified conventional borrowers to secure a new mortgage on the home while opening a home equity line simultaneously. This is an option for borrowers who want to split up a first and second mortgage to avoid mortgage insurance, or to keep their first in a conforming loan, UWM said.
Piggyback HELOCs are available on primary and second home purchases, rate/term and cash-out refinances on conventional loans. Loan amounts can be up to $350,000, and a minimum 680 FICO score is required. The minimum line amount is $10,000 and the initial draw must be 75% of the line amount. For line amounts up to $250,000, an appraisal waiver is accepted with an approved AVM.
Both the Piggyback and Standalone HELOCs are not applicable in Texas.
Meanwhile, UWM said it doubled its VA loan limit $2 million, effective immediately. Requirements for the VA loans include a minimum 620 FICO score in a single-primary residence. Additionally, UWM's VA loans are fixed-term only. Escrow waivers are up to 100% LTV.
These announcements follow shortly after UWM launched Temporary Rate Buydowns, available with 2-1 and 1-0 buydown options for conventional primary and second home purchases, as well as FHA and VA primary home purchases.