For those who qualify, the 1 percent down payment program offered through a partnership between Quicken Loans and Freddie Mac offers a responsible and affordable path to homeownership. But applicants are also singing the praises of the professionals who guide them through the process.
Amanda Dolekary, who recently took advantage of the program closing on a home in Western Pennsylvania, and Patricia Hutchinson, who purchased a home through the program in Southeastern Michigan, both explain that they were highly motivated to get into their own homes, and ecstatic to learn they qualified for the 1 percent down payment program.
“I was a little leery at first because this mortgage wasn’t from a bank you walk into,” confesses Dolekary. “But we had a really good experience because everything was online, which made it quicker and easier to get through the process. We also had a great experience with the Quicken Loans representative who worked with us.”
While her first mortgage experience was through a traditional brick and mortar lender, Dolekary was happy about the Quicken Loans support representative she worked with. “She was very welcoming and helpful, and she called or emailed me immediately any time I had a question,” Dolekary says.
For Hutchinson, whose son approached her about purchasing a home she and his family could share, the 1 percent down payment program provided them with the means to move into their own space.
“We wanted a combined family, and when I found out I qualified for the 1 percent down program, I was very motivated,” says Hutchinson.
Much like Dolekary, Hutchinson also received expert guidance from her Quicken Loans rep.
“He was with me every step of the way, walking me through everything I didn’t understand,” raves Hutchinson.
According to Quicken Loans, qualifying clients have the ability to put as little as 1 percent down, while gaining 3 percent equity through the program. That means a prospective buyer could purchase a $150,000 home with just $1,500 down.
While every loan program has its own set of qualifications, applicants need to keep in mind that the 1 percent down payment program can only be used to purchase a home. Refinances are not eligible.
To utilize the program, the home being purchased must be a single-unit primary residence—home or condo. Second homes and investment properties aren’t allowed, and applicants can’t use the program to get a co-op.
In order to qualify for the 1 percent down payment program, clients must:
- Hold an average FICO score of 680 or higher
- Earn less than the median income for their county
- Have a debt-to-income (DTI) ratio that doesn’t exceed 45 percent
- Participate in an online introduction to homeownership course that provides helpful content and answers common questions asked by first-time homeowners
With the money they saved by taking advantage of the 1 percent down payment program, Dolekary and Hutchinson were able to use their savings elsewhere, including home improvement projects and moving expenses.
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