If you’re dreaming of owning your own home but struggling to save up for a down payment, the Conventional 1% Down loan program might be the solution you’ve been searching for.
United Wholesale Mortgage (UWM), the #1 mortgage lender in America, has made homeownership more accessible and affordable for borrowers across the country with their new Conventional 1% Down loan product. With this low down payment loan program, qualified borrowers can purchase their dream home with only 1% down.
how it works
Curious about how the Conventional 1% Down program works and who can qualify? Let’s break it down.
- Down Payment: With this new program, you only have to put down 1% of the purchase price of the home. The lender then contributes an additional 2% toward the down payment, up to $4,000, for a total of 3% down.
- Income Qualification: To qualify for the program, you must meet certain income requirements. Specifically, your income cannot exceed 50% of the Area Median Income (AMI) for the area in which you plan to purchase the home. This means that the program is primarily designed to assist low- to moderate-income homebuyers who may struggle to save up for a down payment.
- Loan-to-Value (LTV): Loan-to-value is a metric used by lenders to express the ratio of a loan amount to the appraised value of the property. This program is available to borrowers with 30-year fixed-rate loans and an LTV of 97%.
- Mortgage Insurance: As with other conventional mortgage programs, you’ll need to pay mortgage insurance. However, the mortgage insurance premiums for this program are typically lower than for other conventional loan programs. This makes it an even more attractive option for homebuyers who are looking to save on monthly payments.
Benefits for Homebuyers
Homebuyers can enjoy a variety of benefits with the Conventional 1% Down mortgage program, such as:
- Affordable homeownership: This program requires only a 1% down payment, making it more affordable for low- to moderate-income homebuyers.
- Lower monthly mortgage payments: Borrowers can save money on their monthly payments because of lower mortgage insurance premiums compared to other conventional mortgage programs.
- More savings: With a smaller down payment, borrowers can save their money for other expenses related to buying and maintaining a home.
- Faster path to homeownership: A smaller down payment requirement means borrowers can reach their savings goal faster and potentially become homeowners sooner.
This program can be a game-changer for homebuyers who want an affordable and accessible path to homeownership. With income qualification requirements, a low down payment, and reduced mortgage insurance premiums, this program offers several benefits for both homebuyers and real estate agents.
Don’t let the fear of a large down payment hold you back from your homeownership dreams. Contact Loan Pronto today to learn more about how the 1% down loan option can benefit you.
Get a free rate quote or fill out our online loan application below to get pre-approved in 24 hours.
Use our free mortgage and amortization calculators to determine your monthly payment, including mortgage insurance, taxes, interest, and more.
Get My Free Rate Quote