One Percent Down Mortgage

What Happened to Fannie Mae’s 1% Down Payment Loan Program?

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We built One Percent Down Mortgage in 1996 to highlight a what was then a new 1% down Fannie Mae program.  With this program you were able to obtain a conventional, 30-year fixed rate loan with just 1% down and the lender contributed a 2% “Equity Boost”, giving you 3% equity in your new home at closing.  This was an amazing product but Fannie Mae unfortunately made the decision to discontinue this program and the last lender stopped offering it for for all loans locked after May 31, 2018.

Freddie Mac is revised its requirements to state that “gifts or grants from the seller as the originating lender will be permitted only after a contribution of at least 3% of value is made from borrower personal funds and/or other eligible sources of funds as described in Guide.”   It added that gifts or grants from the seller must not be funded through the mortgage transaction, including differential pricing in rate, discount points, or fees for individual loans or across the Home Possible offering, which means that lenders are no longer allowed to roll the 2% gift back into the loan.

Here is a link to Fannie Mae’s announcement about this program.

Since we put the effort into building this site we decide to keep it up and running to let people know happened with this program but also to let customers know that we still offer a number of low down payment loan options. With these programs, you don’t need a 20% down payment to buy a home.  One or two month’s rent could be enough down payment to buy your own home (0% down program for vets and 3% down program for all other borrowers).

Click here to learn more about our low down payment options.  

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