Down payment assistance programs continue to be a valuable resource for homebuyers across the country. At F5 Mortgage, we are committed to helping our clients achieve their dreams of homeownership by offering innovative solutions as a private mortgage lender

That’s why we are excited to present an exclusive opportunity through United Wholesale Mortgage’s (UWM) 0% Down Purchase Program. Qualified borrowers can receive a 3% down payment assistance loan, up to $15,000, from UWM, allowing them to purchase a home with no upfront down payment.

What is the UWM 0% Down Purchase Program?

Our 0% Down Purchase Program is designed to make homeownership more accessible by providing a 3% down payment assistance loan. This loan, provided by UWM, covers up to $15,000 of the purchase price, enabling qualified borrowers to buy a home without covering most or all of the down payment with their own funds. This offers a significant benefit to potential home buyers.

How Does It Work?

Here’s a closer look at how the program works for qualifying borrowers:

  • First lien mortgage meets LTV requirements: The primary mortgage must meet specific loan-to-value (LTV) criteria.
  • United Wholesale Mortgage provides a second lien mortgage: This second lien covers 3% of the purchase price, up to $15,000.
  • No monthly payment or interest: The second lien does not require monthly payments and carries a 0% interest rate so it will not accrue interest.
  • Balance due upon refinancing or payoff: The second lien’s balance is due when the first mortgage is either refinanced or is fully paid off.
  • Optional payments: Borrowers can choose to make payments on the second mortgage throughout the loan term, although it’s not required.

Who Can Qualify?

To qualify for our 0% Down Purchase Program, borrowers must meet certain criteria. Here are the two main qualification paths:                    

  1. Standard Eligibility:

  • Income requirement: Borrowers must have an income at or below 80% of the Area Median Income (AMI) for the property’s location and meet Home Possible® guideline requirements.
  • Additional credit for buyers with very low income: Those with qualifying income at or below 50% of the Area Median Income (Very Low Income Program) receive a $2,500 credit as part of the 3% assistance. This credit does not need to be repaid, reducing their overall debt obligation.
  • Credit and LTV criteria: A minimum FICO score of 620 and an LTV ratio between 95% and 97%.
  1. First-Time Homebuyer Eligibility:

  • First-time homebuyer status: At least one borrower must be a first-time homebuyer, defined as someone who has not had an ownership interest in a home in the last three years.
  • HomeOne® and UWM guidelines: Borrowers must meet HomeOne® and UWM’s guideline requirements.
  • Credit and LTV criteria: A minimum FICO score of 700 and an LTV ratio between 95% and 97%.

Why Choose the 0% Down Purchase Program?

A large down payment is often a barrier for some buyers entering the market. This program makes it easier for borrowers to purchase homes and for independent mortgage brokers to provide loans. Our exclusive program offers numerous benefits for both buyers and mortgage lenders:

For buyers:

  • No upfront down payment: Enter the housing market without needing a large upfront payment.
  • No interest or monthly payments on the second mortgage: Enjoy financial flexibility since the program does not require a monthly payment and there is no interest on the second lien.

For program partners:

  • More qualified buyers means more customers who qualify for loans.
  • Payment assistance results in fewer risks to the mortgage lender when giving loans to lower-income borrowers.
  • Offering this program gives you a significant advantage with consumers who are looking for affordable homes.

How to Get Started?

To take advantage of our 0% down program, follow these steps: 

  1. Contact F5 Mortgage: Call us to us for more information about this down payment assistance program and to discuss your eligibility.
  2. Begin the application process: Start your journey to homeownership with our easy application process.

Key Details and Disclaimers

It’s important to note the following details and disclaimers:

  • Program subject to change: Information is subject to change, and certain restrictions apply.
  • Second lien details: The down payment is provided as a second lien against the property. This lien bears a 0% interest rate, has no minimum monthly payment requirements, a loan term of 360 months, and is due as a balloon payment upon refinancing or payoff of the first lien.
  • Qualifying borrower: Borrowers must qualify based on Home Possible® or HomeOne® guidelines. Some exclusions may apply.

The principal, interest, and MI payment of a $350,000 30-year Fixed-Rate Loan at 6.75% and 97% loan-to-value (LTV) is $2270.09. The Annual Percentage Rate (APR) is 6.949% with estimated finance charges of $6,500. The principal and interest payments, which will continue for 360 months until paid in full, do not include taxes and home insurance premiums, which will result in a higher actual monthly payment. Rates are current as of 5/20/24. Subject to borrower approval. Some exclusions may apply.

Take the Next Step Toward Homeownership Today!

The 0% Down Purchase Program is a powerful tool designed to benefit borrowers and help our partners get more loans while establishing stronger relationships with real estate agents. Don’t miss this opportunity to make homeownership a reality without the burden of a large upfront down payment. This down payment assistance loan makes purchasing a home more affordable, especially since it will not accrue interest and does not require a monthly payment.

Ready to Get Started?

If you’re ready to explore how the 0% Down Purchase Program can help you achieve your homeownership goals, contact F5 Mortgage today to begin the application process. Let us help you unlock the door to your new home!

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