In the past, a 20% down payment was standard for conventional home buyers. Low down payment options were restricted to VA programs, USDA loans, or other government loans. Today there’s a new program that could let you purchase a home with just 1% down.
With the average cost of a house in the country approaching $200,000, saving up for a traditional twenty-percent down payment of $40,000 is a difficult and sometimes impossible task. Saving for a down payment was becoming a barrier to homeownership for a lot of people.
By introducing this 1% down program, we’re helping borrowers realize the dream of owning a home. Plus, when you just put 1% down you can keep more money in your pocket for emergencies or home repair and maintenance.
This loan is designed for people with a strong credit payment history who want to keep as much money in their wallet as possible when buying a home. And you don’t have to be a first-time homebuyer.
Borrowers must have:
Minimum FICO: 700+
Max Debt to Income Ratio: 43%
You may be wondering if buyers are putting so little down do they have to pay other fees? Standard closing cost apply; however, unlike other low down payment programs, this 1% program is a conventional loan that doesn’t require a monthly mortgage insurance premium. In fact, you may not even pay private mortgage insurance. As the lender, we can take care of that for you if you choose.
1% Down Program
- Limited to single-family residences: home, condo or townhouse.
- Not exclusive to first time homebuyers.
- Borrower may not own any other residential property.
- Applicable to 30 year fixed rate mortgages only.
- Income restrictions may apply in some geographic areas.
Interested? Click here to find a lender in your area.