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Low Down Payments are the New Mortgage Trend

Published: Jul 29, 2016

Low Down Payments are the New Mortgage Trend

As home prices continue to increase nationwide, many new low down payment programs are being pushed out.  We are seeing 3% down payment mortgage programs offered by several bank giants, including Bank of America, Wells Fargo, and JPMorgan Chase.

Quicken Loans 1% Downpayment Mortgages

Unbeknownst to many, Quicken Loans quietly began offering 1% down payment mortgages late last year.  The 1% down payment loans are only available to those purchasing a home and can only be used on a single-family home or condo. 

Borrowers must also have a FICO score of 680 or above, must earn less than the median income for their county, and their debt-to-income ratio must be 45% or less.

But even 1% down is not the lowest that the market has accepted recently.  Banks, such as Fifth Third Mortgage and BancorpSouth, are now offering zero-down mortgages to borrowers who meet certain specific requirements. 

Sources: HousingWire “United Wholesale Rolls Out Its 1% Down Program” 7/13/16; HousingWire “Freddie Mac, Quicken Loans Partner to Offer Low-Down Payment Mortgages” 10/19/15