What is a 1% down loan?
It's a conventional mortgage loan with an equity boost which allows you to purchase a home with very little money down:
- You put down 1%, your lender contributes 2% to your down payment, giving you 3% equity at closing
- Great low rates
- Close in 30 days or less
- Great option for first time home buyer loans
Saving up a 1% down payment is easier than it sounds.
Minor adjustments to your routine spending could add up quickly, especially if you're eating on the go. Wawa coffee in the morning along with a hoagie for lunch could cost you up to $10 each day. Think about how much you could save by brewing coffee at home and packing a lunch every day for 1 year! That savings could go towards a down payment on a house. With a loan that only requires 1% down, that money could mean the difference between staying in an apartment and getting your own place.
Do I qualify?
As with any loan program, there are qualifications to meet in order to be eligible. There are income requirements, which will vary by county, and a maximum debt-to-income ratio.
- BMC Keystone will help you understand how your debt-to-income ratio is calculated and which sources of income and expenses should be included.
- Some of these programs have a lower credit score requirement.
- If you don't know your current credit scores, we can guide you on the best way to access them.
- If your credit is not strong enough to get you the best rates, we can advise you on how to start improving it in order to take advantage of programs like this one.
For more information about 1% down loans and other loan options for Pennsylvania, please contact BMC Home Mortgage in Glenside PA. Take advantage of our no-cost, no-obligations consultation to review your financing plans, your credit history and today’s great rates.