United Wholesale Mortgage announced it is launching a new jumbo loan product which would allow borrowers to place 10% down with no mortgage insurance.
The jumbo loan would allow for homebuyers to take out a mortgage of up to $1.5 million on a 90% loan-to-value mortgage, UWM President and CEO Mat Ishbia announced during a weekly company sales meeting Wednesday.
The program is for borrowers with a FICO score of more than 720, and enables jumbo loan borrowers to lower their down payment or increase their buying power. Because UWM doesn’t require mortgage insurance with the product, it also helps lower the monthly payment.
The jumbo 90% LTV mortgage with no MI is available for primary homes with a 30-year fixed rate mortgage and borrowers who have a maximum debt-to-income ratio of 43%. Also, 18 months of principle, interest, taxes and insurance reserves are required.
The company also announced during a panel Wednesday it is looking to expand its national high value loan program, which allows brokers to originate mortgages higher than the national conforming loan limit of $453,100 without using a jumbo product if it is below $850,000.
One panelist even threw out the possibility of making this program available with no mortgage insurance.
During this same sales meeting, Ishbia also announced the company is putting an end to its 1% down mortgage program as of May 31, 2018, saying the company was losing money on the loans.