It is often difficult for homebuyers to save up the 3% down payment typically required to qualify for conventional financing (3.5% for FHA financing). Those borrowers who made only the minimum down payment had the additional cost of expensive monthly mortgage insurance.
Although the 1% down mortgage program is available to all home buyers, it is not available through all lenders!
With this program, qualified borrowers need only bring 1% of the mortgage loan to the closing table. This program works by using a 2% grant (lender credit) that does not have to be repaid -even if you move or refinance.
Requirements and Benefits:
- Minimum credit score of 700
- Single Family Purchase Transactions only
- Maximum Mortgage Insurance capped at 25% (standard is 35%)
- No Reserves Required
- Area Median Income applies to this program
- First Time Homebuyers may be required to take Home Buyer Education
- 30 Year fixed rate only
- Maximum loan $424,100
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