UWM's 90% LTV Cash-Out Refinance: Unlock More of Your Home’s Equity

United Wholesale Mortgage (UWM), the nation’s largest mortgage lender, has introduced a new 90% loan-to-value (LTV) cash-out refinance option, offering homeowners an exciting opportunity to access more of their home’s equity. This new product is designed to give homeowners additional financial flexibility, making it easier to achieve their goals, whether it’s paying off debt, funding home improvements, or making a significant purchase.

Here’s why UWM's 90% LTV cash-out refi could be a smart move for you.

More Cash from Your Home’s Value

Traditionally, most cash-out refinance options have capped borrowing at 80% LTV. UWM’s new "Conventional Cash-Out 90" program now allows you to refinance up to 89.99% of your home’s value. That means if your home is valued at $500,000, you can potentially access nearly $450,000 of its equity—a significant increase from the previous limit of $400,000 under the 80% rule.

This additional cash can be used for a variety of purposes, including:

• Home Renovations: Take advantage of more funds to enhance your living space or increase your property’s value through upgrades.

• Debt Consolidation: Pay off high-interest debts by consolidating them into your mortgage at a potentially lower rate.

• Investing in Opportunities: Use the extra cash to invest in new business ventures, education, or other financial opportunities.

No Private Mortgage Insurance (PMI) Required

Unlike many high-LTV loans, UWM’s 90% cash-out refinance does not require private mortgage insurance (PMI), even though you’re borrowing more than the typical 80% threshold. This can help keep your monthly payments lower and make the loan more affordable overall.

While PMI isn’t required, the cost may be reflected in the mortgage rate, but UWM’s competitive rates ensure you’re getting value for the money you’re borrowing.

Flexibility with Loan Amounts

The maximum loan amount for this program is set at the conforming loan limit, which for 2024 is $766,550. This gives homeowners in many markets ample room to borrow what they need, while keeping their loan within standard conforming limits.

Who Is Eligible?

To qualify for this new cash-out refinance option, there are a few key requirements:

• The property must be your primary residence.

• A minimum FICO credit score of 680 is needed.

• The loan amount is capped at the 2024 conforming loan limit of $766,550.

These straightforward eligibility criteria make the 90% LTV cash-out refinance an accessible option for many homeowners looking to take advantage of their home’s increased equity.

Maximize Your Home’s Potential

In today's market, where home values have risen steadily over recent years, many homeowners have built up significant equity. UWM’s new program allows you to tap into that equity and use it in ways that best suit your needs, without the need to sell your home or take out a second mortgage.

Whether you’re looking to make home improvements, invest in education, or simply enjoy greater financial flexibility, this cash-out refinance option can help you achieve those goals more easily than ever before.

Bottom Line

UWM’s 90% LTV cash-out refinance gives homeowners more control over their home’s equity, providing them with increased financial flexibility. With no PMI requirement and the ability to access a larger portion of your home’s value, now could be the perfect time to take advantage of this new program.

If you’re ready to unlock your home’s full potential, talk to a UWM-approved mortgage broker today and see how this new option can work for you.