A previous version of the product was last offered in May 2024.

With this iteration, the mortgage is available up to the conforming loan limit for buyers at or below 80% of the area median income with a credit score of 620 or above. While the product has a loan-to-value ratio of 97%, the remaining 2%, up to $7,000, is being contributed by UWM as part of a down payment assistance program. UWM does not have an end date for this program at this time.

Underwriting follows Fannie Mae HomeReady or Freddie Mac Home Possible guidelines and thus needs to meet Desktop Underwriter or Loan Product Advisor eligibility.

In the past version, first introduced in 2016, the DPA was up to $4,000. That product was dropped when UWM came out with a 0% down purchase mortgage that offered DPA up to $15,000 to cover the 3% to bring it to the 97% LTV. The 0% down program was sunset at the beginning of this year.

"This program is a win for borrowers and will get them into a home sooner with less money out of their pocket," Mat Ishbia, UWM's president and CEO, said in a press release. "This gives independent mortgage brokers a significant competitive advantage both with their clients and real estate agents this purchase season."

What is happening with the spring housing market?

It has so far been a slow spring home purchase season. The latest Mortgage Bankers Association Weekly Application Survey reported a volume increase for the first time in a month, up 12.5% overall from the prior week, with purchases up 10% on a seasonally adjusted basis.

"Despite continued affordability challenges, higher inventory levels are bringing more buyers into the market," MBA President and CEO Bob Broeksmit said. "Purchase activity last week was 20% higher than a year ago."

While there are signs that the housing market is tilting in favor of buyers, active listings rose just 13.9% for the four weeks ended June 8 compared with the same period in 2024; this was the smallest increase in a year, Redfin said. New listings made during the timeframe were up 5.2%.

The median sales price of $397,000 was up 1.6% versus 2024, but the median monthly mortgage payment rose 4.1% to $2,854, which Redfin said was $29 shy of the record high.

"It's still tough for many Americans to buy a home, as affordability remains a real challenge, but house hunters should know that sellers are accepting offers below asking price and giving concessions to get deals done," said Chen Zhao, Redfin's head of economics research in a press release.