1% Down Payment
Loan Program
Available To All Buyers To All Buyers To All Buyers To All Buyers To All Buyers To All Buyers To All Buyers To All Buyers To All Buyers To All Buyers To All Buyers
- No Commitment
- No Strings Attached
- No Commitment
- No Strings Attached
Benefits
- 2% forgivable grant included - totaling to a 3% down payment!
- Low Mortgage Insurance Options
- Fast close – 21 days from contract to keys
- Available to ALL Buyers - Not just First-Timers!
Eligibility
- Minimum 1% down payment
- $350,000 Maximum Loan Amount
- Minimum credit score of 620
- 80% Area Median Income Limit
What is a 1% Down Payment Loan?
The 1% Down Payment Loan is a unique offering that allows eligible borrowers to contribute just 1% of the purchase price as their down payment. For instance, if you’re buying a $300,000 home, your down payment would be just $3,000.
This low down payment option with reduced PMI is a win-win, by directly reducing down payment requirements and reducing monthly payments. This program makes homeownership more accessible to individuals who may not have significant savings but are financially responsible and able to afford a mortgage.
How Does the 1% Down Payment Loan Work?
The 1% Down Payment Loan is a conventional, 30-year fixed-rate loan that meets the minimum 3% down payment requirement of that program by combining your 1% down payment with a 2% grant, giving you a combined 3% down payment. This grant is forgivable, meaning you don’t have to repay it, and is there to cover the additional down payment usually required.
Key Benefits of the 1% Down Payment Loan
The 1% Down Payment Loan offers several advantages:
- Low Down Payment: The program allows you to enter the housing market with a minimal upfront cost, conserving your savings for other expenses or investments.
- Reduced Mortgage Insurance: With this loan, mortgage insurance premiums are reduced from the full “coverage” amount typically required.
- Accessible to All: The program is available to ALL buyers, not just first-time homebuyers. This widens the scope of who can benefit from this innovative loan option.
Eligibility Requirements for the 1% Down Payment Loan
To qualify for the 1% Down Payment Loan, you must meet the following requirements:
- Down Payment: You must be able to bring in a minimum of 1% down payment on your own. Gift funds or down payment assistance programs may be used to cover this requirement.
- Credit Score: A minimum credit score of 620 is required.
- Income Limit: Your income must be 80% or less of the area median income (AMI) in your location. This specific income limit will vary depending on where you plan to purchase your home.
- Residency: The 1% down payment option is only available for primary residences. It is not applicable for investment properties or vacation homes.
- Loan Size: This program is only available for loan amounts up to $350,000.
- Homebuyer Education: If you are a first time homebuyer, you must take a homebuyer’s education course.
1% Down Payment Loan Program Guidelines
Lendexa 1% Down Payment Loan program guidelines are designed to make homeownership more attainable for eligible borrowers. With a minimum 1% down payment and a 2% forgivable grant, this program makes it easier to secure a mortgage loan. Here are the key guidelines of the program:
- Minimum 1% Down Payment
- Mortgage Insurance Required
- Buyers can bring in up to 3% Down
- Available to ALL Buyers – Not just First-Timers!
- 620 Minimum Credit Score
- $350,000 Maximum Loan Amount
- 80% Area Median Income Limit
- Closing Timeline = 21 Days
- 1 Unit Only
- Primary Residence Only
- Conventional Financing – a Perfect Fit for Condos
Contact Lendexa if you have questions or would like to better understand their specific requirements for the 1% Down Payment Loan Program.
Frequently Asked Questions
Yes, the 1% Down Payment Loan is not exclusive to first-time homebuyers. It’s available to ALL buyers who meet the eligibility criteria.
Yes, mortgage insurance is required for the 1% Down Payment. But, the premium costs are reduced below typical market mortgage insurance rates, which makes it easier to afford on a monthly basis, financed into the loan, or to have paid by the lender.
Yes, gift funds from a relative or an eligible down payment assistance program can be used to cover the 1% down payment requirement.
No, the 1% Down Payment Loan is only available for primary residences. It is not applicable for investment properties or vacation homes.
Take the Next Step with Lendexa Mortgage
Our team at Lendexa Mortgage is here to guide you every step of the way. Start your Lendexa mortgage application online or contact us today to discuss your homeownership goals and learn more about how the 1% Down Payment Loan could be the key to unlocking your dream home.
NEXT STEP
Get your instant rate quote.
- No commitment
- No impact on your credit score
- Fast and easy
- No documents required
NEXT STEP
Get your instant rate quote.
- No commitment
- No impact on your credit score
- Fast and easy
- No documents required
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