Borrowers now able to purchase homes with as little as one percent down payment, plus additional contributions towards costs
CHICAGO, July 26, 2023 /PRNewswire/ -- Guaranteed Rate has introduced OneDown1, a mortgage loan that features down payment options as low as one percent as well as an additional two percent contribution towards that down payment (or up to $2,000—whichever is lower). OneDown further offers borrowers a $1,000 contribution toward lender fees.
OneDown is available for real estate transactions involving Single Family Residences including condominiums. The program is especially intended for first-time borrowers or homebuyers with an AMI (Area Median Income) under 80%. No geographic restrictions apply.
"OneDown is Guaranteed Rate's response to the ongoing effect of stubborn inflation and higher interest rates," said Kate Amor, SVP and Head of Enterprise Products for Guaranteed Rate. "We want to not only make homeownership less intimidating but make it possible for more families by offering down payment options as low as 1%." According to a recent study covered by the New York Post2, only 53% of Americans are confident in their ability to own a home someday.
Surprisingly, the same study also found that 40% of those surveyed felt that hitting the jackpot is their best chance to be able to afford homeownership.
By removing the need for a big lump sum in the form of a down payment, Guaranteed Rate helps to offer an affordable option to potential buyers that dream of homeownership.
Amor also notes that seller-paid Temporary Buydown3 options may be available for borrowers, offering additional flexibility through lower rates and payments in the early years of the mortgage. This program also boasts reduced mortgage insurance coverage to help lower payments and can be combined with community second programs for additional assistance for eligible borrowers.
Guaranteed Rate is dedicated to uplifting potential homebuyers and giving them the tools to build a brighter future for themselves and their families through financial security with affordability programs like OneDown. For more information, go to rate.com.
About Guaranteed Rate
Guaranteed Rate is a leader in mortgage lending and digital financial services. Headquartered in Chicago, the Guaranteed Rate Companies have over 850 branches across the U.S., serving all 50 states and Washington, D.C. Since its launch in 2000, Guaranteed Rate Companies have helped more than 1 million homeowners with home purchase loans and refinances. The company has cemented itself as an industry leader by introducing innovative technology, offering low rates and delivering unparalleled customer service. Honors and awards include: Top Lender for Online Service for 2018 by U.S. News & World Report; Best Mortgage Lender for Online Loans and Best Mortgage Lender for Refinancing by NerdWallet for 2021; HousingWire's Tech100 award for the company's industry-leading FlashClose℠ in 2020, digital mortgage platform MyAccount in 2022, and Language Access Program in 2023; No. 2 ranking in Scotsman Guide's 2022 list of Top Retail Mortgage Lender; the most Scotsman Guide Top Originators for 11 consecutive years; Chicago Agent Magazine's Lender of the Year for seven consecutive years; and Chicago Tribune's Top Workplaces list for seven consecutive years. Visit rate.com for more information.
1 Guaranteed Rate's OneDown loan program is for purchase transactions of primary residences. Property type restrictions apply. Eligible occupant borrowers income must be less than 80% of area median income and borrowers must contribute a minimum of 1% down payment from borrower's own funds. Any additional down payment or funds required to close must be from an eligible source. At least one borrower must complete Homebuyer Education when all occupying borrowers are first time homebuyers. Applicant subject to credit and underwriting approval. Restrictions apply.
2 https://nypost.com/2023/06/23/1-out-of-5-americans-believe-theyll-never-be-able-to-afford-a-home/
3Rate Reduce available from participating builders and sellers on select properties.
Guaranteed Rate, Inc.; NMLS #2611; 3940 N Ravenswood, Chicago, IL 60613; 866-934-7283. For licensing information visit nmlsconsumeraccess.org. Equal Housing Lender. Conditions may apply. • AZ: 14811 N. Kierland Blvd., Ste. 100, Scottsdale, AZ, 85254, Mortgage Banker License #0907078 • CA: Licensed by the Department of Financial Protection and Innovation under the California Residential Mortgage Lending Act • CO: Regulated by the Division of Real Estate • GA: Residential Mortgage Licensee #20973 • MA: Mortgage Lender & Mortgage Broker License #MC2611 • ME: Supervised Lender License #SLM11302 • NH: Licensed by the New Hampshire Banking Department, Lic #13931-MB • NJ: Licensed by the N.J. Department of Banking and Insurance • NY: Licensed Mortgage Banker - NYS Department of Financial Services, 750 Lexington Ave. Suite 2010, New York, New York 10022 • OH: MB 804160 • OR: Licensed and Regulated by the Department of Consumer and Business Services • PA: Licensed by the Pennsylvania Department of Banking and Securities • RI: Rhode Island Licensed Lender • WA: Consumer Loan Company License CL-2611.
SOURCE Guaranteed Rate
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