( NewsNation ) — Many Americans are struggling to afford a home , and today’s typical down payment of $56,000 presents a major obstacle .
One of the nation’s largest mortgage lenders is trying to lower that barrier, announcing a new 0% down mortgage program last month. United Wholesale Mortgage (UWM) said the program aims to “help more borrowers become homeowners without an upfront down payment.”
Under the program, qualifying borrowers would receive a 3% down payment assistance loan up to $15,000. That loan won’t accrue interest or require a monthly payment. Instead, it needs to be paid off by the end of the mortgage term if the owner refinances or when the house is sold.
While that may sound appealing to some, it doesn’t solve today’s problem of high interest rates, said Lance Lambert, co-founder and editor-in-chief of ResiClub .
“Doing 0% down doesn’t necessarily pull that many buyers back into the market because the thing that’s keeping them sidelined is they can’t afford that monthly payment,” Lambert told “NewsNation Now” on Wednesday.