Homebuyers Can Now Cut Their Home Purchase Payments By Just 1%, According To Rocket Mortgage

Rocket Mortgage offers a new program for low-to-middle-income homebuyers to buy their dream home for as little as 1%.

Rocket Mortgage ( Photo: CitySignal )

Rocket Mortgage’s New Program Takes Only 1% Down Payment

A new product from the nation’s largest nonbank mortgage lender, called ONE+, will allow aspiring low- and middle-income homeowners to buy a home in their area for just 1% off the home purchase price, the company announced. It also avoids mortgage insurance payments, reducing the overall cost of owning a home. Rocket will pay 2% of borrowers’ loans, the company said. Mortgage insurance premiums, which are usually required when a homebuyer pays less than 20% of his payment, are also reduced.

“This is going to be a big deal for a lot of people”

Rocket Mortgage CEO Bob Walters said in an exclusive interview with MarketWatch: “I’m really, really excited about rolling this out, he said. In 2008, the International Monetary Fund reported that poor underwriting practices were a key factor in the US subprime mortgage crisis.

Unlike the low or zero down payment schemes that caused the subprime credit crunch, lenders will provide loans to people who will eventually be unable to repay, requiring borrowers to meet specific and stringent credit standards. to prevent the same scenario from repeating again, says Walters.

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