Homeownership with Just 1% Down Payment

Highland Mortgage's ONE+ Program: Homeownership with Just 1% Down Payment

Buying a home can be daunting, especially when faced with the significant hurdle of a down payment. Highland Mortgage understands this challenge and offers a solution with its innovative ONE+ Homeownership program. This program allows you to purchase your dream home with as little as 1% down, significantly reducing the financial barrier to entry for many homebuyers.

How ONE+ Works:

The ONE+ program combines a low down payment with a grant, making homeownership more accessible. Here's how it works:

1% Down Payment: You only need a 1% down payment (maximum 97% loan-to-value with a 2% grant).
2% Grant: Highland Mortgage provides a 2% grant, calculated on the sales price, up to $7,000. Importantly, this grant requires no repayment and has no prepayment penalty.
3% Equity from the Start: Combining the 1% down payment and the 2% grant means you'll start your homeownership journey with 3% equity.

Key Features and Requirements:

The ONE+ program comes with specific requirements and benefits:

Loan Type: The program is available for single-unit, primary residences only.
Income Restrictions: Applicants must have an income at or below 80% of the area median income.
Credit Score: A minimum FICO credit score of 620 is required.
Debt-to-Income Ratio: The debt-to-income ratio should be less than 50%.
Loan Amount: The maximum loan amount is $350,000.
Loan Term: The loans are available for a 30-year term.
Loan Type: Only conforming conventional loans are eligible.
Reduced Mortgage Insurance: Because of the low down payment, mortgage insurance is required. However, because of the grant, the insurance costs are reduced compared to a similar loan without this assistance.

Who Should Consider ONE+?

The ONE+ program is ideal for first-time homebuyers, those with limited savings, and individuals looking to reduce the financial burden of a down payment. It offers a significant advantage for those who otherwise might find it difficult to enter the housing market.

Next Steps:

To learn more about the ONE+ program or to explore your eligibility, contact Chris Heidt, Mortgage Banker at Highland Mortgage.