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.
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