Rocket Mortgage Introduces 1% Down Payment Program That Includes Manufactured Homes
Source: MPA News – Retail home lender Rocket Mortgage has introduced its latest initiative. ONE+ allows homebuyers to make a down payment of no more than 1% of a property’s purchase price, with Rocket Mortgage covering the remaining 2% needed to meet the usual loan threshold amount. ONE+ also does away with the monthly mortgage insurance fee typically required from buyers who pay less than 20% down on their purchase.
Bob Waters, CEO of Rockey Mortgage, said that the lender had encountered aspiring homeowners from all walks of life who could easily make the monthly mortgage payments but were held back by a sizable down payment they could not save up for.
“One+ is a response to that feedback and the latest example of Rocket’s commitment to creating programs that help make homeownership more attainable.” Walters said.
The 1% down payment program was designed specifically to serve millions of Americans from low to moderate income-level households struggling with housing affordability. Homebuyers whose income added up to 80% or less than their area median income (AMI) and who were looking to buy a single family home, including manufactured homes, can utilize the ONE+ program by applying at RocketOnePlus.com, through the Rocket Mortgage mobile app, or through any of the Detroit-based lender’s broker partners.
Rocket mortgage estimated that an additional 90 million people could achieve homeownership based on the program’s low-threshold income requirements.
Under the one-percent down payment initiative, a homebuyer purchasing a home worth $250,000 would only need to put out $2,500 instead of the minimum 3%- or $7,500- that would have normally been asked of them. Additionally, since One+1 offers mortgage insurance at no cost to the client, the homebuyer would save as much as $245 a month on a $242,500 home loan, freeing up their monthly cash flow and saving up to $20,500 for the first seven years after closing during which mortgage insurance fees typically need to be paid.
“Rocket Mortgage prides itself on finding innovative solutions and lending programs that help clients achieve their goals in any market cycle,” Walters said. “No other lender has a mortgage option that makes affordable homownership possible for as many Americans as ONE+.
