One of nation’s top lenders launches ‘Zero Down Mortgage’ program to help homebuyers
One of nation’s top lenders launches ‘Zero Down Mortgage’ program to help homebuyers
New 'Zero Down Mortgage' Program Launched by Top Lender
Introduction of 'Zero Down Mortgage' Program
One of the largest lenders, United Wholesale Mortgage, has introduced a new 'Zero Down Mortgage' program aimed at assisting buyers who struggle with the upfront down payment.
Program Benefits and Mechanics
The program offers an upfront loan for the down payment, set as an interest-free second mortgage, repayable when the home is sold, refinanced, or paid off.
Growing Popularity and Market Concerns
Since its launch, the program has attracted thousands of homebuyers but also raised concerns about potential risks if the housing market declines.
Industry Expert Opinions
Experts emphasize the stricter loan qualification criteria today compared to the past, arguing that such safeguards reduce the risks associated with zero down payment loans.
What is the main aim of the "Zero Down Mortgage" program launched by United Wholesale Mortgage?
The main aim of the "Zero Down Mortgage" program launched by United Wholesale Mortgage (UWM) is to help homebuyers who cannot afford the down payment required to purchase a home5. Through this program, UWM provides qualified borrowers with an upfront loan for the down payment, which is interest-free and can be repaid when the home is sold, refinanced, or paid off5. By removing the barrier of a down payment, the program aims to make homeownership more accessible to a wider range of potential buyers, particularly those who can afford monthly mortgage payments but struggle to save for a down payment.
What are the terms for repayment of the down payment assistance provided under the "Zero Down Mortgage" program?
The "Zero Down Mortgage" program offers an upfront loan to help buyers with their down payment. The money provided for the down payment is set aside as an interest-free second mortgage, which the homebuyer is required to repay when the home is sold, refinanced, or paid off.