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One Percent Down Payment Mortgages

Some can now buy a house with 1% down.

Two big mortgage lenders have introduced programs that enable modest-income borrowers to qualify for loans with just 1% down payment. Rocket Mortgage announced its ONEplus program in May. United Wholesale Mortgage launched its conventional 1% Down in April but they made them more competitive after Rocket entered the market. According to Bankrate, both lenders are piggybacking off of 2 Fannie Mae programs. A conventional loan with just 3% down is available to borrowers earning less than 80% of their neighborhood’s median income. Rocket and United Wholesale cover 2% of Fannie Mae’s 3% mortgage rate. Rocket also covers private mortgage insurance or PMI at no additional cost. These programs are so generous they may not last long. They’re also risky.

One thing to consider is the possibility of home prices shrinking. It would be very easy to owe more than your house is worth. That’s why experts stress the 28/36 rule when buying a house. Don’t let mortgage payments exceed 28% of your monthly gross income. Don’t let total debt payments exceed 36% of your total monthly income. If you’re married, I highly recommend saving one of your salaries and living off the other. This provides protection in the event of job loss or if choosing to pause your career. The real estate market is crazy right now. Seek the Lord for guidance and be mindful that your home here is just temporary.

Now I want you to join us at Crown’s 2023 Reunion. It will be informative and deeply encouraging. We plan to gather October 12-15 at Ridgecrest Conference Center near Asheville, North Carolina. For more details and registration, go to