UWM raises conventional loan cap ahead of FHFA announcement

Lender is the latest to push up its loan limits

UWM raises conventional loan cap ahead of FHFA announcement

United Wholesale Mortgage (UWM) has raised its conforming loan limits to $715,000 ahead of the Federal Housing Finance Agency’s official announcement in November.

UWM’s maximum conforming limit for regular, one-unit properties will increase to $715,000.  For special statutory provisions in Alaska and Hawaii, the baseline loan limit will be $1,073,000 for regular, one-unit conventional loans.

The wholesale lender urges borrowers to take advantage of the new higher loan ceiling.

“UWM is singularly focused on giving mortgage brokers a competitive advantage in the mortgage industry,” UWM said in a statement.

Read more: What could conforming loan limits mean to your mortgage?

Its competitor Rocket Pro TPO, the wholesale arm of Rocket Mortgage, also expects to hike its conforming loan limits to $715,000.

“That means more folks will be able to get a new conventional loan – better rates, better pricing, less money down on purchases, which is a big deal, more cash-out available on a refi and typically an easier process in documentation compared to a jumbo loan,” Austin Niemiec, executive vice president of Rocket Pro TPO, told Mortgage Professional America in an exclusive interview. “It’s a better overall loan for the borrower, better experience in getting the loan closed and, on purchase, it makes their offer a heck of a lot more attractive to sellers.”