How to Buy a Home with Just 1% Down: The Conventional 1% Down Loan

Written by: Amanda Charalambous
  |  2 min read
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Saving for a down payment is one of the biggest challenges for homebuyers. If you’re struggling to set aside enough money, the Conventional 1% Down Loan could be the solution.

Offered by United Wholesale Mortgage (UWM), the nation’s top mortgage lender, this program helps qualified borrowers purchase a home with just 1% down, while the lender contributes an additional 2% (up to $4,000) toward the down payment.

How the Conventional 1% Down Loan Works

Feature Details
Down Payment Borrowers pay 1% of the home’s purchase price. The lender adds 2% (up to $4,000), creating a total 3% down payment.
Income Qualification Income must be 50% or less of the Area Median Income (AMI) for the home’s location.
Loan-to-Value (LTV) Available for 30-year fixed-rate loans with an LTV of 97%.
Mortgage Insurance Required but lower than standard conventional loans, reducing monthly payments.
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Benefits of the 1% Down Loan Program

This loan program offers several advantages for homebuyers:

  • Lower Upfront Costs – With only 1% down, buyers can enter the market sooner without needing to save for years.
  • Reduced Monthly Payments – Lower mortgage insurance premiums help make homeownership more affordable.
  • Greater Financial Flexibility – Buyers can allocate savings for moving costs, home improvements, or emergency funds.
  • Faster Path to Homeownership – Less time is needed to save for a down payment, making it easier to buy a home sooner.
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Who Should Consider This Loan?

This low down payment loan ideal for:

  • First-time homebuyers with limited savings
  • Low- to moderate-income borrowers seeking an affordable financing option
  • Buyers who want to minimize upfront costs while keeping monthly payments manageable

Get Pre-Approved in 24 Hours

If a low down payment sounds like the right option for you, contact Loan Pronto today for a free rate quote or start your online application. Our team can help you get pre-approved in just 24 hours.

Want to estimate your monthly payment? Use our free mortgage and amortization calculators to determine costs, including mortgage insurance, taxes, and interest.

Take the first step toward homeownership today!

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