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.
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.
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:
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.
To qualify for a 1% down mortgage, borrowers must meet specific requirements:
Income Limits:
Credit Score:
Loan Type:
First-Time Homebuyer Status:
Primary Residence:
Lower Upfront Costs:
Reduce the financial burden of saving for a traditional down payment.
Lender Assistance:
Gain additional equity through the lender’s contribution, helping you start with 3% equity in your home.
Faster Path to Homeownership:
Allows you to purchase a home sooner instead of waiting to save for a larger down payment.
Build Equity Quickly:
Enter homeownership with equity already in place, providing a financial safety net.
Access to Competitive Rates:
These programs often come with favorable interest rates, making homeownership more affordable in the long term.
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.
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.
At Simply Approved Mortgages, we offer a wide range of mortgage products tailored to meet your needs:
👉 Explore these options today and find the perfect mortgage solution for your needs!
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.
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.
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.
No, availability varies by lender and region. Check with local lenders or Simply Approved Mortgages to see if this program is offered in your area.
No, these programs are only available for primary residences.
The lender contributes 2% of the home’s purchase price as a grant, which does not need to be repaid, to meet the minimum 3% equity requirement.
Yes, PMI is typically required until the borrower reaches 20% equity in the home.
Yes, in many cases, you can combine this program with state or local down payment assistance programs for even greater savings.
Take control of your home-buying journey today. Use our Home Affordability Calculator to estimate how much house you can afford and start planning your dream home purchase with confidence.
Start Now:
Simply input your details and see how much equity you could access today. If you have questions or need assistance, our team is here to guide you every step of the way.
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In today’s fluctuating economy, Canadian homeowners are increasingly looking at refinancing their mortgages
In today’s fluctuating economy, Canadian homeowners are increasingly looking at refinancing their mortgages
In today’s fluctuating economy, Canadian homeowners are increasingly looking at refinancing their mortgages
Reduce your monthly payment or loan term while unlocking the full potential of your home’s equity!
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