Mortgage Giant Rocket Makes Low Down Payment Loans Easier To Get—And Afford

Reviewed By Reviewed By Published: Jan 11, 2024, 9:19am Rocket Pro TPO, the wholesale arm of Rocket Mortgage, has just announced updates to its ONE+ program aimed at making it easier for prospective homeowners to obtain a low down payment conventional mortgage. ONE+ allows buyers to make a down payment of as little as 1% of the home’s purchase price.

The program now includes Freddie Mac’s Loan Product Advisor. Use of the automated underwriting system could increase buyer eligibility by 16%, Rocket Pro TPO executive vice president Mike Fawaz said in a recorded statement. “The market has been tough and there’s a lot of clients out there wondering how they can afford a home,” Fawaz noted.

With these program updates, brokers “can ease potential home buyers’ hesitation to enter the market and show them how to achieve homeownership,” he said. The ONE+ program allows buyers to make a down payment of just 1%. Rocket then provides a grant of 2% of the purchase price to clients taking out conventional loans.

A minimum 3% is generally needed to qualify for a . But eligible buyers of homes with a purchase price under $100,000 will now receive a minimum incentive of $2,000 to put toward a down payment, rather than the 2%. What’s Needed To Qualify For the ONE+ Program? There are several eligibility requirements you must meet to take advantage of Rocket’s low down payment program.

They include: The ONE+ program can only be used for conventional loan products, which have a maximum funding limit of $350,000. In addition to your down payment, Rocket also requires buyers to have enough capital to cover closing costs. Find the Best Mortgage Lenders of 2024.