What is a 1% Down Mortgage and How Does it Work?

If saving for a big down payment is holding you back from buying a home, there’s good news—a 1% down mortgage could be the solution you’ve been waiting for.

This program is designed to help qualified buyers become homeowners with just 1% of the purchase price out of their pocket. Here’s how it works:

• You put down 1% of the home’s price as your contribution.

• Your lender contributes an additional 2%, giving you a total of 3% equity at closing.

• This is not a loan or repayment, it's a boost to help you qualify for a conventional mortgage.

  
  

To qualify, most programs require:

• A minimum credit score, usually around 620 or higher

• Income within certain limits (often based on your area)

• A primary residence purchase (not an investment property)

  
  

The 1% down mortgage is a great option for buyers who have a stable income and good credit, but lack sufficient savings for a traditional down payment. It helps you move into your home sooner, without years of saving.

If you're wondering whether you qualify or would like to explore what your monthly payment could look like with this program, please reach out. I'd be happy to walk you through it.