Exclusive: Lower launches mortgage option with minimum 1% down payment
Lower launched ONE, a 1% down payment program with a 2% grant capped at $4,500 for borrowers at or below 80% AMI and a 620 score.
Lower's new mortgage option with a 1% down payment requirement is making waves in the local real estate market. This move is significant because it addresses a major barrier to homeownership: the hefty down payment. By offering a program with a minimal down payment and a grant to help with closing costs, Lower is opening up the possibility of homeownership to more people in our area.
This program, called ONE, has specific requirements, including a credit score of at least 620 and an income at or below 80% of the area median income (AMI). The 2% grant, capped at $4,500, will help borrowers with costs associated with buying a home. This type of program is especially relevant in our local market, where housing affordability has been a concern.
What's next to watch is how other lenders in our area respond to Lower's move. Will we see a trend towards more low-down-payment mortgage options? And how will local home prices and inventory levels be affected by increased demand from borrowers who can now qualify for a mortgage with a lower down payment? As the real estate market continues to evolve, we'll be keeping a close eye on developments like this and what they mean for our community.
Originally reported by housingwire.com. LodgeNews adds analysis for real estate & property readers.