A 1% down conventional loan is something I had never heard of until now. And typically a conventional loan does require more down: 5% or even up to 20%. But now homebuyers have the opportunity to purchase a new home with a 1% conventional loan.
When my friend, Christopher Griffith of Nationwide Home Loans, called me to tell me about this new 1% down conventional home loan, I wanted to hear more. I was sure there must be a catch. But when we got together to discuss the details, the plan sounded, not just solid, but too good not to pass on to my clients.
Watch my interview with Christopher…
So, here is how it works. As the homebuyer, you put 1% down on your new home. The lender puts another 2% down for you. This 2% is a gift! Yes, a real gift! A gift as in, you don’t pay it back, it’s not a soft second mortgage. It is flat out a gift! So, it’s better than just a 1% down conventional loan. You actually get an extra 2% from your lender. So, on closing day, you are walking into your new home with 3% equity even though you only put 1% down. Yes, this is for real!
So, Christopher tells me this and I’m still waiting for the catch. I mean this sounds like down payment assistance. There are typically income restrictions on down payment assistance. But with the 1% down conventional loan there are not income restrictions. There are certain areas within Denver that have restrictions on income with this loan product. But most neighborhoods in and around the Denver area have no income restrictions. This includes the Denver suburbs and outlying rural communities like Strasburg and Elizabeth as well.
In order to qualify for the 1% conventional loan program you must have a credit score of 700 or better. However, if your credit score isn’t quite there, Christopher is more than happy to refer you to his credit team who can help you get your credit up to where it needs to be.
One of the most common reasons that homebuyers prefer conventional loans over FHA is because of mortgage insurance. But even with conventional loans, typically borrowers are required to pay mortgage insurance until they have at least 20% equity in their home. This is not the case with this 1% down conventional loan. There is no third party mortgage insurance required.
And this program is not just for the first time home buyer! The only restriction is that borrowers must not have ownership interest in any other properties.
The 1% down conventional loan is a great option for home buyers! Even if you have saved enough to put plenty down on your new home, this loan is worth looking into for the 2% lender gift.
And for a limited time, I am willing to make this program even better. Use me as your REALTOR to find your new home and on your home purchase of $300,000 or higher, I will give you a 1% credit toward your closing costs.
That means you put 1% down.
The lender puts 2% down.
And I put 1% toward your closing costs.
Let’s start looking for your dream home! Call me (Courtney) at 720-476-0370.
And you can reach Christopher at 303-840-7444. Be sure to tell him I sent you!
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