Conventional 1% Down Payment

This loan is actually a normal Conventional 3% Down Payment loan program with no upcharges or modifictions to pricing.  The lender actually does a 2% down payment assistance GRANT that is completely forgiven.

The grant is 2% of the sales price up to $4,000.  This program is optimal when the purchase price is less than $200,000, but is not limited to $200,000.

Borrower income must be less than 80% of the Area Median Income (AMI).  This program does not require borrowers to include total household income making it much easier to qualify.

Happy Homebuyers 7

Benefits

  • Helps open the door to homeownership for more borrowers by providing down payment assistance to borrowers with income up to 80% of the Area Median Income.
  • These loans follow HomeReady and Home Possible guidelines, so they can take advantage of LLPA caps. The caps make it easier for underserved areas and underserved borrowers to achieve homeownership.
  • This program can help gain business from real estate agents by being able to offer an additional affordable product giving you a competitive advantage

Parameters

  • 30-Year Fixed primary purchases ONLY
  • Max LTV = 97%
  • Down payment grant can cover up to the lesser of 2% or $4,000
  • Max DTI = determined by DU or LPA Findings - typically 45% DTI
  • Minimum FICO = 620
  • Maximum Loan Amount = conforming loan limits (no High Balance)
  • All HomeReady and Home Possible guidelines must be met - 80% AMI
  • Fannie Mae Area Median Income Lookup Tool
  • Freddie Mac Home Possible Income & Property Eligibility Tool
  • Maximum 90-day lock period
  • No 2-4 units or manufactured homes
  • Condos and PUDs are eligible for LPA only
  • Condos and PUDs ineligible for DU
AMI Map