BORROWER ELIGIBILITY

• For 0% Down Purchase Home Possible®: only eligible for borrowers with income at or below 80% Area Median Income.

  • Freddie Mac Freddie Mac Home Possible® Income & Property Eligibility Tool

• No AMI restrictions on 0% Down Purchase HomeOne® when at least one occupying borrower on the loan is a first-time homebuyer and has at least a 700 FICO score.

• No FTHB requirements for 0% Down Purchase Home Possible®

• Homeownership education required when all borrowers are first-time homebuyers

• Very Low-Income Purchases (VLIP) for borrowers whose AMI is 50% or lower receive a credit of $2,500.

• Borrowers who receive this credit are only eligible for up to $12,500 down payment assistance from UWM.

• Non-occupying co-borrowers are not permitted on a 0% Down Purchase - HomeOne® loan.

• Non-occupying co-borrowers are permitted up to 95% LTV on 0% Down Purchase - Home Possible® loans 

CALCULATIONS

The amount of down payment assistance is calculated based on the lower of the appraised value or the sale price of the subject property. 

WITHOUT VLIP CREDIT

EXAMPLE 1:

Sales price is $300,000, appraised value is $290,000

3% of $290,000 = $8,700

Second lien = $8,700

EXAMPLE 2:

Sales price is $600,000, appraised value is $650,000

3% of $600,000 = $18,000

Second lien = $15,000 (assistance cap)

WITH VLIP CREDIT

VLIP borrowers may receive an additional credit of $2,500 from Freddie Mac, which will be subtracted from this calculation to give the final second lien amount.

EXAMPLE 3: 

Sales price is $450,000, appraised value = $600,000

 3% of $450,000 = $13,500 minus VLIP credit of $2,500

 Second lien = $11,000