It seems mortgage rates keep moving lower and lower, and now some veterans and active duty military might be able to snag a 30-year fixed as low as 2.25%! That’s pretty unheard of.
While it sounds too good to be true, it appears to be a reality thanks to United Wholesale Mortgage’s push to dominate the mortgage market.
The rapidly growing wholesale lender based out of Pontiac, Michigan announced the new offering today via their website, calling it “Conquest for VA.”
Who Is Eligible for Conquest for VA?
- Active duty military and veterans who otherwise qualify for VA loans
- Those looking for a VA purchase loan or VA IRRRL (streamline refinance)
- Primary residence only for purchases
- Primary and second homes for VA IRRRLs
- Minimum FICO score of 640
- Must obtain financing via a mortgage broker approved to work with UWM
- Homeowner must not have closed a refinance through UWM in past 18 months
- Mortgage rates start from 2.25% to 2.375% on the 30-year fixed
Now let’s talk about who’s eligible for this seemingly fantastic loan program, which UWM says is being offered to honor our nation’s veterans.
As the name suggests, Conquest for VA is reserved for veterans and active duty military, and anyone else generally eligible for a VA home loan.
So if you don’t qualify for a VA loan, you’ll have to look into their general Conquest loan program instead.
Additionally, these low rates are only applicable to new home purchase loans and streamline refinances (IRRRLs). In other words, no cash out refinances here.
Take note of the occupancy type as well – primary residence only for purchases, primary and second homes for IRRRLs.
You must have a minimum FICO score of 640 and like the conventional Conquest program announced a couple weeks ago, these rates are only available to borrowers who haven’t worked with UWM in the past 18 months.
In terms of interest rates, they start as low as 2.25% on the 30-year fixed, which is surreal, though they could be an eighth higher at 2.375%. Either way, pretty hard to beat.
Another cool feature to this program is you can choose your own loan term, ranging from as little as eight to a full 30 years.
For example, if you’re already several years into a 30-year fixed, you could choose a shorter term to avoid resetting the clock while refinancing.
Lastly, UWM is a wholesale mortgage lender, meaning you can’t contact them directly as a homeowner.
Instead, you have to work with a mortgage broker who is approved with UWM.
So if you’re weighing the mortgage broker vs. bank argument, these super low rates could be a tipping point for some.
As always, be sure to shop mortgage rates with mortgage brokers and banks to ensure you don’t miss an even better deal.
Also, pay attention to the closing costs associated with these mortgage rates since interest rate is just one piece of the pie, and mortgage APR is a more accurate representation of total loan cost.
Like I mentioned with their conventional Conquest program, UWM seems to be the trailblazer here, but my guess is other mortgage lenders will jump on board and offer similarly low rates now or in the very near future.