Don’t have a big down payment? Purchase your home with 1% down.
With our Conventional 1% Down loans, you put 1% down and your lender pays an additional 2%, giving you a total of 3% down at closing. Plus, you can use gift funds and down payment assistance to cover your entire down payment. It’s a great way to get into your home of your dreams while keeping more money in your pocket.
The "1% down mortgage program" referred to a specific type of mortgage program that allowed qualified homebuyers to make a down payment of just 1% of the home's purchase price. The program was designed to help borrowers with limited savings to enter the housing market by reducing the initial cash requirement typically associated with home purchases.
Here's how the 1% down mortgage program typically worked:
- Down Payment: Borrowers could contribute a down payment of just 1% of the home's purchase price. For example, if the home was priced at $200,000, the borrower's down payment would be $2,000.
- Assistance: To reach the 1% down payment requirement, some lenders offered down payment assistance to qualified borrowers. This assistance could come from the lender itself, a government agency, or a nonprofit organization. The assistance might be in the form of a grant, a silent second mortgage, or a lender credit.
- Eligibility: Borrowers needed to meet certain eligibility criteria to qualify for the 1% down mortgage program. This could include having a good credit score, a stable income, and meeting specific debt-to-income ratio requirements.
- Mortgage Insurance: In most cases, borrowers were required to pay for private mortgage insurance (PMI) until they built up sufficient equity in the home. PMI protects the lender in case the borrower defaults on the loan.
It's important to note that the availability of the 1% down mortgage program and its specific terms could vary and might change over time. Mortgage programs and regulations can evolve based on market conditions and economic factors.
If you are interested in the 1% down mortgage program please feel free to reach out to us directly.