Homeownership For All: Our 1% Down Payment Program
In this guide, we’ll share how you can qualify for our 1% down payment program, the benefits homebuyers get with 1% down, and why many first-time buyers choose this program to start their homebuying journey.
Interested in seeing if you qualify?
Let's Find Out!
How to Buy a Home with 1% Down
- Up to $7,000 in down payment assistance
- A low-cost conventional loan with cancellable private mortgage insurance (PMI) once you reach 20% equity
- Financial flexibility with the option to use gift funds or a local first-time homebuyer grant program to cover your 1% down payment
- No additional second lien or repayment terms on the 2% or $7,000 down payment contribution
Quick Answer
UMortgage’s 1% down payment program provides 2% or up to $7,000 in down payment assistance to help homebuyers achieve their dreams of homeownership while saving money that can be used for furniture, move-in costs, or other expenses.
Why Consider UMortgage's 1% Down Payment Program?
Here's why qualified buyers choose to use our 1% down payment program.
Low Down Payment
Coming up with the cash for a down payment is the biggest barrier to entry for many homebuyers. This program significantly reduces the cash homebuyers need to provide at closing.
Low-Cost Conventional Loan
This program gives borrowers the benefits of a conventional loan (like cancellable mortgage insurance) without needing to break the bank.
Save Money for Furniture, Moving Costs, and More
With less needed for a down payment, buyers can save money for the other expenses that come with buying a home, like furniture, moving costs, fresh paint, and more!
Gift Fund Flexibility
Gift funds can be used to cover the borrower’s entire down payment contribution and/or closing costs, further reducing the required savings that act as the most common obstacle to homeownership.
Pro Tip
If you’re a first-time homebuyer, you may be able to combine a local grant program for first-time buyers with this program to achieve your dreams of homeownership without breaking the bank.
Who Qualifies for our 1% Down Payment Program?
Income
Income at or below 80% of Area Median Income (AMI)
Credit Score
620 FICO
Down Payment
1% (or the remaining amount if the 2% of down payment assistance exceeds $7,000)
Debt-to-Income (DTI)
Less than 50%
Property Types Allowed
Primary home
Compare Our 1% Down Program vs. Conventional & FHA Loans
1% Down
30-Year Fixed Conventional
FHA Loan
What's your budget?
Curious about how much you can afford to spend on a home? Use our calculator to get an estimate on your maximum budget.
Maxiumum Home Price
$0
Maxiumum Monthly Payment
$0 /mo
The UMortgage mortgage calculators are for estimation purposes only. This is not a commitment to lend. For an exact quote based on your individual financial circumstances, please contact us.
How to Apply for our 1% Down Payment Program
Pre-Qualification
Answer a few questions online or with a UMortgage Loan Originator.
Get Custom Loan Options
We’ll check your eligibility, show you rates, and explain how much assistance you qualify for.
Lock In Your Rate
Once you're happy with your rate, you can lock it in and start gathering documents for underwriting.
Underwriting & Closing
We'll guide you every step of the way and help you close on your new home quickly and clearly.
Frequently Asked Questions About 1% Down
Here are answers to the most common questions we get about our 1% Down Payment program.
Here's Why UMortgage is Your Best Choice
Relationships, Not Transactions
We’re here for more than just your mortgage. We’ll stick with you beyond closing to help you gain financial freedom through homeownership.
Local & Nationwide Expertise
With licensed loan officers across the country and deep knowledge of your local market, we’ll help you buy with confidence anywhere you call home.
Fast, Transparent Closings
We communicate with you every step of the homebuying or refinance process so you can close quickly without any hidden fees or surprises.