ONE+

Down payment got you down? ONE+ allows you to put down just 1%.

This loan option has several benefits. Chief among them is the ability to put down as little as 1% and get into a home. Lender providing a grant of 2% of the purchase price. Under this scenario, you would enter your home with 3% equity. Clients who qualify may contribute up to 3% toward a down payment while still receiving the 2% grant.

This is available for both first-time and repeat home buyers. There are no restrictions on where you can live or where you move from. The program is available nationwide.

But before we go too much further, let’s show a sample loan. We'll use a $250,000 assumed purchase price. This is a 30-year fixed loan with an interest rate of 7%.

• You bring $2,500 for a down payment (.01 × $250,000 = $2,500).

• Lender covers 2% of the loan amount (.02 × $250,000 = $5,000).

• Your monthly principal and interest payment is $1,613.36

 Qualifying For ONE+ By Rocket Mortgage

Because this is a conventional loan product tied to affordable housing goals, there are several requirements you should know about. Here’s a brief rundown:

• You can’t qualify if you make higher than 80% of the median income in the area in which you’re looking to buy. For example, if you live in Macomb County, Michigan the area median income is $90,800. You can’t use more than $72,640 to qualify for this ($96,200 × 0.8 = $76,960). You can look up your areas median income with Fannie Mae's lookup tool.

• You need a qualifying   ® FICO Score of 620 or better.

• This is for single-unit primary residences only.

• When combined with our 2% grant, your initial down payment can be no more than 5%.

• There's a $350,000 upper loan limit on this conventional option.

 Although there are income limits, there’s one other important note to make. This is qualifying income. If you can meet  debt to income ratio (DT) requirements without using bonus income or putting another borrower on the loan, it doesn’t need to be included in your qualifying income. This could give you some breathing room.

Frequently Asked Questions About ONE

Now that you have the basics, let’s take some time to answer a few questions you may have about this option.

Is this really a 1% down option?

Yes, but you get the benefit of going into your loan with 3% equity. In addition to the 1% you bring to the closing table, Lender is providing a 2% grant.

Are temporary buydowns available for this product?

Temporary buydowns allow for the creation of a fund to effectively lower the interest rate for a year or more at the beginning of your loan term. These are allowed if they come from an eligible source including the builder, seller or a real estate agent.

 Are there other low down payment options if I don’t qualify for this program?

There are several other low down payment options that may be available to you depending on your situation. For example, if you need to qualify with a higher income, you can still put as little as 3% down on a conventional loan as a first-time home buyer. If your credit score is 580 or better, you can put 3.5% down for an FHA loan.

The Bottom Line I’d Like To Refinance We know that the down payment is one of the biggest obstacles home buyers face when they can otherwise afford a mortgage payment. ONE+ by Rocket Mortgage allows you to get a mortgage by putting as little as 1% down. Combined with a 2% grant from us, you start with 3% equity. This is available to those qualifying with less than 80% of the area median income level who have qualifying credit scores of 620 or better. You can buy a single-unit primary residence nationwide. Does this sound good to you? You can 1 apply online or give one of our Home Loan Experts a call at (215) 501-4159.