CHERRY HILL, N.J., July 31, 2017 /PRNewswire/ -- Exclusive to NJ, CT, FL, & PA home buyers, Garden State Home Loans, Inc. launched a 1% down payment program for buyers looking to purchase a new home.
The launch of this new program makes buyers eligible to own the home of their dreams, and the approach works in a fashion that will shake up the future of mortgages and homeownership. This option is available to all qualified first-time home buyers, and buyers that haven't purchased in the last three years.
This option is exclusively made available for purchase mortgages applied to properties that will be used as a primary residence. The credit score required for this program is a hard 720 minimum, and the debt-to-income ratio (DTI) must not be in excess of 43%. Additionally, the program is available with no mortgage insurance (PMI). The maximum loan amount for this program is $424,100.00.
The way it works is simple. When a borrower puts down 1% of the property's purchase price, the lender contributes an additional 2% towards the down payment. This puts the buyer in a position to have 3% equity in the property at the time of closing.
As the economy continues to grow and millennials break into the purchase vertical of homeownership, this exclusive 1% down option opens up new avenues of exploration for qualified buyers. The opportunities are immensely broadened for any first-time buyer with great credit and a low DTI.