New loan product offers lower rates, more flexible guidelines and fewer requirements than Jumbo
.jpg)
United Wholesale Mortgage will offer conventional high-balance loans nationwide, providing access to a more cost-effective loan product in areas that previously lacked high-balance loans.
“The roll-out of High Balance Nationwide opens up a huge business opportunity for mortgage brokers throughout America,” said Mat Ishbia, president and CEO of UWM. “This is a win-win for consumers and our mortgage broker network, and we are excited for this product to make a big difference to our broker partners and many of their consumers in 2018 and beyond.”
Currently, only 7% of U.S. counties (220 out of 3,234) have access to loan amounts over $453,100, through FHFA conforming loan limits, with the most expensive areas going up to $679,650. For the rest of the country, the only option is a true jumbo loan, which comes with higher fees, additional guideline requirements and stringent overlays.
UWM is filling the gap by offering its broker network a conventional high-balance loan program that covers every county. The program gives consumers access to a $679,650 loan amount, competitive rates, a streamlined underwriting process and the accessibility of a $849,570 purchase price with a 20% down payment.
With lower rates, more flexible guidelines and fewer requirements than jumbo, Conventional High Balance is popular with many lenders.
Highlights of UWN’s High-Balance Nationwide include:
- 680 minimum FICO
- 43% debt-to-income
- 80% loan-to-value
- Primary and second homes
- Average turnaround time of 15 days or less from submission to closing
“Jumbo loans are very competitive in our area, and we are in a county that high-balance is not available, so often we lose business to big banks as a result,” said Brodie Calder, president of Beam Lending in Layton, Utah. “Now we are able to offer a fast and easy competitive loan with a great rate that will not only be beneficial to growing our business, but it will also be a better loan option for our clients.”
Headquartered in Troy, Michigan, UWM has been the number-one wholesale lender in the nation for two years in a row. Operating under parent company United Shore, UWM underwrites and provides closing documentation for residential mortgage loans originated by independent mortgage brokers, correspondents, small banks and local credit unions.
