(Newsweek) Thousands of homebuyers have taken on United Wholesale Mortgage’s (UWM) new 0% Down Purchase mortgage since the Pontiac-based company launched the product a month ago, a spokesperson for UWM told Newsweek.
The mega mortgage lender launched in mid-May a program offering qualifying borrowers a 3 percent down payment assistance loan up to $15,000 to purchase a home, allowing people to get on the property ladder without upfront down payment. It’s a second loan, in addition to the mortgage, which does not require a monthly payment and does not accrue interest.
Mortgage rates are still hovering around the 7 percent mark as the Federal Reserve has not yet changed its target rate range so far this year—much higher than many homebuyers feel comfortable with. As of June 13, the 30-year-old fixed-rate mortgage was 6.95 percent, according to Freddie Mac. The 15-year-old fixed-rate mortgage was 6.17 percent.
“We’ve seen tremendous success with the program so far,” a spokesperson for UWM told Newsweek. “Consumers across the country who were sitting on the sidelines because they didn’t have enough for a down payment are now achieving their dream of homeownership.”
