Unlocking Homeownership: The 1% Down Conventional Mortgage

Unlocking Homeownership: The 1% Down Conventional Mortgage 

For many first-time buyers, saving for a down payment is the biggest roadblock to becoming a homeowner. Traditional conventional mortgages require at least 3% down, while FHA loans start at 3.5% and VA or USDA loans have specific eligibility rules. That’s why the 1% down conventional mortgage program is gaining attention — it’s a low down payment option designed to make homeownership more accessible to everyday buyers. 

How a 1% Down Conventional Loan Works 

With this program, the borrower contributes just 1% of the home’s purchase price, and the lender provides an additional 2% toward the down payment, often in the form of a grant. For example, on a $300,000 home, you’d pay only $3,000 upfront instead of the $9,000 required under a traditional 3% down mortgage. This grant is not a loan, meaning it does not need to be repaid.  

Benefits of a 1% Down Payment Mortgage 

The biggest advantage is obvious: it lowers the barrier to entry. With less money needed upfront, buyers can enter the housing market sooner and begin building equity faster. Many lenders also pair these loans with competitive mortgage rates or even cover private mortgage insurance (PMI), further reducing monthly costs. For buyers who qualify, a 1% down conventional loan offers a path to homeownership without years of saving for a larger down payment. 

Requirements and Considerations 

Not everyone will qualify. While the program provides significant upfront savings, some drawbacks include potentially higher interest rates and required PMI until sufficient equity is built. Additionally, not all lenders offer this program, so buyers may need to search carefully to find one that does. 

Is a 1% Down Conventional Loan Right for You? 

For qualified borrowers, this program can be a game-changer, especially for first-time homebuyers who want to stop renting and start investing in their future. By reducing the upfront cost of buying a home, a conventional 1% down mortgage makes homeownership more achievable than ever. 

Ready to see if you qualify? Contact The Erice Group today and let’s take the first step toward your new home.