United Wholesale Mortgage is waiving credit-score-based loan-level pricing adjustments on FHA and VA loans for borrowers with scores of 580 or higher, giving brokers a reason to revisit eligible quotes where credit-based costs have been an obstacle.
The wholesale lender also reduced its pricing adjustment on VA cash-out refinances above 90% loan-to-value from 1.250 to 0.750. Both changes apply to locks through Dec. 31.
“Through December 31, there are no credit score loan-level pricing adjustments (LLPAs) for FHA and VA loans with credit scores of 580 and above,” a company spokesperson said. “This means borrowers with scores at or above 580 won't face the typical credit-based pricing penalties on these government loans.”
For originators, the opportunity is to compare updated quotes for borrowers whose credit scores previously triggered additional costs. Removing those adjustments could improve the available rate-and-cost options without a change in the borrower’s credit profile.
VA Cash-Out Pricing Improves By Half A Point
The VA cash-out change represents a 50-basis-point improvement in loan pricing. On a $300,000 loan, the difference equals $1,500 before other pricing factors. The borrower’s actual benefit depends on the final rate-and-cost structure; the adjustment does not represent a half-percentage-point reduction in the note rate.
“The LLPA on VA cash-outs above 90% LTV has been reduced from 1.250 to 0.750,” the spokesperson said.
The credit-score waiver does not eliminate every potential pricing adjustment. The separate VA cash-out adjustment remains at 0.750 following the reduction.
Pricing Relief Follows Overlay Removal
The offer follows UWM’s removal of minimum credit-score overlays on agency loans, which NMP reported Oct. 7.
That change removed UWM’s own minimum-score requirements on conventional, FHA, VA, and USDA products, with eligibility determined through the applicable automated underwriting system under agency guidelines. It did not eliminate agency requirements or guarantee approval.
The changes address separate obstacles. Removing a lender overlay can allow an otherwise eligible file to proceed, while waiving a credit-score pricing adjustment can improve the terms available on a qualifying loan.
For brokers reviewing older scenarios, the first step is identifying why the transaction stalled: a lender-specific eligibility requirement, the cost of the financing, or both.
Government-Loan Relief Has A History
UWM has offered similar pricing incentives before. In November 2024, it announced an LLPA waiver for FHA, VA, and USDA borrowers with FICO scores of 600 or higher through March 2025. A subsequent company social post in 2025 advertised an extension through June 30 and expanded eligibility to scores of 580 and above.
The current offer specifies FHA and VA loans, with both the credit-score waiver and VA cash-out reduction available for locks through year-end.
For originators, the immediate opportunity is a fresh comparison on eligible files that stalled over price. Updated quotes can show whether the relief lowers cash to close or improves the payment enough to bring a borrower back into the transaction.
