Rocket Mortgage Launches 1% Down Home Loan Program

Rocket Mortgage (NYSE: RKT) has launched a new 1% down home loan program called ONE+. The program is designed to make homeownership more affordable for millions of low-to-moderate-income Americans.

With ONE+, homebuyers are only required to make a down payment of 1% of the purchase price. Rocket Mortgage will cover the remaining 2% needed to reach the required threshold for conventional loans.

A homebuyer purchasing a $250,000 home will typically need a minimum of 3% down, or $7,500. With ONE+, they will only need a $2,500 down payment. Plus, ONE+ offers mortgage insurance at no cost to the homebuyer, which on a $242,500 loan, can be as much as $245 per month, or as much as $20,500 over the first seven years after closing.

“We know that homeownership is a dream for many Americans, but the high cost of a down payment can be a major barrier,” said Jay Farner, CEO of Rocket Companies. “ONE+ removes that barrier and makes homeownership more attainable for millions of people.”

The program is available to homebuyers purchasing single-family homes – including manufactured homes – whose income is equal to or less than 80% of their area median income (AMI). They must have a credit score of at least 620 and a debt-to-income ratio of no more than 50%. The company estimates that more than 90 million people can meet the income requirements for ONE+. The program is available in all 50 states.

The launch of ONE+ comes at a time when home prices are rising rapidly. The median home price in the United States is now over $400,000. A 1% down payment on a $400,000 home is only $4,000.

Last month, United Wholesale Mortgage (UWM) revived its conventional 1% down loan option, which similarly allows homebuyers to purchase a home with a 1% down payment.


Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Leave a Reply

Video Articles

Endeavour Mining Q1 Earnings: Cash Flow Is King

G Mining Oko West Feasibility: Move Fast, Break.. Nothing?

New Gold Q1 Earnings: What’s Behind The Market’s Surprising Reaction?

Recommended

Giant Mining Encounters Native Copper As Hole MHB-34 Hits 563 Metres Depth

Verses Hits Commercialization Stage With Genius AI Platform

Related News

Rent-Striking Thorncliffe Park Tenants To Get Evicted

Tenants in Thorncliffe Park, an apartment complex in Toronto who have been protesting above-guideline rent...

Wednesday, June 21, 2023, 03:13:00 PM

Florida’s Housing Insurance Crisis Is About to Get Worse

Florida’s housing insurance crisis is about to take a turn for the worse as property...

Tuesday, February 28, 2023, 04:29:00 PM

Trudeau Targets Investors as Housing Affordability Worsens in Canada

Housing affordability in Canada is facing a mounting crisis, with housing construction not keeping pace...

Friday, November 3, 2023, 11:18:00 AM

7 In 10 Canadians Still Want To Own A Home But Can’t Afford To

In a recent survey conducted by the Canadian Imperial Bank of Commerce (CIBC), it was...

Monday, June 5, 2023, 11:51:00 AM

Trudeau Still Doesn’t Know How to Fix the Real Estate Problem

When asked about the government’s plans to address the commodification of housing in his country,...

Monday, October 23, 2023, 03:41:00 PM