Achieve Homeownership With Just 1% Down

Dreaming of owning a home but struggling to save for a traditional down payment? A 1% down mortgage could be the solution you’ve been waiting for. Designed to make homeownership more accessible, this innovative program allows you to purchase a home with a minimal down payment while gaining additional support from your lender. At Simply Approved Mortgages, we’re here to guide you through the process and help you take the first step toward your dream home with confidence.

1% Down Mortgage Overview

What Is a 1% Down Mortgage?

A 1% down mortgage is a unique home loan program designed to help borrowers achieve homeownership with just a 1% down payment. These programs are aimed at making homeownership more accessible for individuals with moderate incomes who may struggle to save for a traditional down payment.

Disclaimer: Advertised rates and fees depend on borrower qualifications and market fluctuations.

How Do 1% Down Mortgages Work?

With a 1% down mortgage, the borrower contributes 1% of the home’s purchase price as a down payment. The lender typically contributes an additional 2% as a grant or assistance, effectively providing the borrower with 3% equity in the home at closing. This meets the minimum down payment requirement for certain loan programs.

For example:

Home Price: $300,000
Borrower Contribution (1%): $3,000
Lender Assistance (2%): $6,000
Total Down Payment (3%): $9,000

At Simply Approved Mortgages, we operate with a 1.5% fee, significantly below the industry standard. This ensures more savings for borrowers without compromising service quality.

Disclaimer: Simply Approved Mortgages complies with all state and federal licensing requirements that we are licensed in.

Eligibility Requirements for a 1% Down Mortgage

To qualify for a 1% down mortgage, borrowers must meet specific requirements:

Income Limits:
- Programs are often targeted at moderate-income borrowers, with income limits tied to the area median income (AMI). Typically, borrowers must earn 80% or less of the AMI.
Credit Score:
- A minimum credit score of 620 is generally required. Higher scores may increase eligibility and improve terms.
Loan Type:
- 1% down mortgages are typically offered as conventional loans backed by Freddie Mac.
First-Time Homebuyer Status:
- Many programs prioritize first-time homebuyers, though repeat buyers may also qualify in some cases.
Primary Residence:
- The property must be used as the borrower’s primary residence.

Simplify your mortgage journey process with Simply Approved Mortgages.

Benefits of a 1% Down Mortgage

1. Lower Upfront Costs:
  Reduce the financial burden of saving for a traditional down payment.
2. Lender Assistance:
  Gain additional equity through the lender’s contribution, helping you start with 3% equity in your home.
3. Faster Path to Homeownership:
  Allows you to purchase a home sooner instead of waiting to save for a larger down payment.
4. Build Equity Quickly:
  Enter homeownership with equity already in place, providing a financial safety net.
5. Access to Competitive Rates:
  These programs often come with favorable interest rates, making homeownership more affordable in the long term.

Drawbacks to Consider

While 1% down mortgages have significant advantages, there are some considerations:

Mortgage Insurance:
Borrowers may be required to pay private mortgage insurance (PMI) until they reach 20% equity in the home.
Income Restrictions:
Strict income limits may exclude higher-income borrowers.
Limited Availability:
Not all lenders offer 1% down mortgage programs, and they may only be available in certain regions.
Property Restrictions:
Only single-family homes, condos, or townhomes used as primary residences may qualify.

Example Scenarios for a 1% Down Mortgage

First-Time Homebuyer:
A couple earning 75% of their area’s median income qualifies for a 1% down mortgage, allowing them to purchase their first home with just a $2,500 down payment on a $250,000 home.
Moderate-Income Borrower:
A single professional earning 80% of the AMI secures a 1% down mortgage, reducing upfront costs and entering the housing market earlier.

Why Simply Approved Mortgages Stands Out

At Simply Approved Mortgages, we redefine what it means to provide exceptional mortgage services. Here’s why we’re the better choice:

Lower Fees, Bigger Savings:

With our industry-leading 1.5% fee, compared to the standard 2.75%, we save you thousands while offering competitive rates tailored to your needs. Learn More.

Expert Guidance:

Our team of seasoned professionals is dedicated to simplifying the mortgage process, providing personalized solutions, and ensuring you feel confident every step of the way.

Transparent and Trustworthy:

We prioritize honesty and clarity. From disclosing every detail upfront to ensuring no hidden surprises, we build trust through our commitment to your financial success.

Choose Simply Approved Mortgages for a smarter, more affordable way to achieve your homeownership or refinancing goals.