Mortgage giant is financing loans with a 1% down payment again
Mortgage lender United Wholesale Mortgage (UWM) announced Wednesday that it has reintroduced its Conventional 1% Down product. This offering allows homebuyers to purchase a home with a 1% down payment from the borrower.
The product is immediately available for homebuyers meeting specific criteria: an income at or below 80% of the area median income (AMI), a 97% loan-to-value (LTV) ratio, and a FICO score of 620 or higher. Under the program, when a borrower contributes 1%, UWM will add an additional 2%, with a maximum contribution of $7,000. This brings the total down payment to 3%. The product is available up to the conforming loan limit.
“One of the biggest hurdles to buying a home is the down payment, and we’re removing that barrier with this product,” said Mat Ishbia, president and CEO of UWM. “This program is a win for borrowers and will get them into a home sooner with less money out of their pocket. This gives independent mortgage brokers a significant competitive advantage both with their clients and real estate agents this purchase season.”
UWM previously offered this product in May 2024, at which time the company’s contribution was up to $4,000. The company suggested that the down payment assistance can allow borrowers to retain funds for other expenses such as furniture, moving costs, repairs, or potentially to buy down their interest rate.
The reintroduction comes after UWM reported a 17.1% year-over-year increase in loan production for the first quarter of 2025, totaling $32.4 billion. The rise was attributed to a 92.5% increase in refinance activity. UWM also reported a quarterly net loss of $247 million, primarily due to mortgage servicing valuation adjustments.
UWM has also announced other product updates in recent weeks, including 5/1 FHA and VA adjustable-rate mortgages and the rollout of two artificial intelligence tools, “Mia” and “LEO,” designed to assist mortgage operations.
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