Have you been thinking about getting a home of your own but don’t have a bunch of money saved for the down payment? There’s a great option for you, but you have to act quickly.
Quicken Loans clients can get a home with a little as 1% down while gaining 3% initial equity through a 2% lender grant from Quicken Loans. For example, if the home you’re looking at is worth $300,000, you can put as little as $3,000 down while gaining $9,000 in equity.* While it’s a great deal for our clients, it’s coming to an end January 31, 2018. If you’re in the market for a mortgage, now is a great time to apply .
We’ll go over the advantages of the program, and then we’ll talk about what you need to know to apply.
Lots of Financial Flexibility
The big advantage of this program is the financial flexibility it offers. A 1% down payment opens up a lot of options.
Maybe you’re a first-time home buyer looking to quit giving your money to a landlord. You have the income for a house, but you don’t have $15,000 lying around for a down payment. This program could be for you.
It’s also very helpful because the cost of housing is going up . This is great for sellers and homeowners with lots of existing equity, but it can make it harder to get into a home for those just starting out. A lower down payment helps with that.
Finally, no house is exactly the way you want it when you first move in. A lower down payment gives you more money for furniture and any renovations you may want to complete.
Does this sound good? There are just a few things you need to know before applying.
All loan programs have their own requirements regarding which clients qualify. This one is no different. Let’s go over the specifics.
There are a couple of financial requirements to think about when you’re applying for this program.
The lowest median FICO score between the three major credit bureaus of all clients on the loan must be 680 or higher.
Qualifying income must be below 100% of the area median income wherever you’re looking to buy. Higher limits may apply if you live in a high-cost area, or if you’re in an area Freddie Mac considers underserved, they may not apply at all.
For the best chance of qualification, your debt-to-income (DTI) ratio should be no higher than 45%. In some cases, you may be able to get approval at 50%.
In order to get a home loan through this program, you must be buying a one-unit primary property. It has to be the only residential property you own. Vacation homes and investment properties are ineligible for this financing option.
You can use this loan on the following property types:
Planned unit developments
Condos and site condos
In addition, Quicken Loans must be able to verify the property you’re purchasing no later than January 31, 2018.
If this sounds like a good option for you, take advantage before it goes away. You can apply online through Rocket Mortgage ® by Quicken Loans . If you’d rather get started over the phone, one of our Home Loan Experts will be happy to work with you if you give us a call at (888) 980-6716. If you still have questions, feel free to leave them for us in the comments below.
*For example, the payment on a $300,000, 30-year fixed-rate loan at 4.75% (5.135% APR) with a loan-to-value ratio of 97% is $1,644.10. Taxes and insurance not included. Rates shown valid on publication date of 12/18/2017. Restrictions may apply.
The post Take Advantage of 1% Down Payment Option Before It Ends appeared first on ZING Blog by Quicken Loans .