Introducing OneDown, your doorway to homeownership
For many people, the biggest obstacle they face on their path to homeownership is affording the downpayment. For many, it’s possible to find a home at a price that will offer you monthly mortgage payments in a similar range as what you might be paying on rent. But the prospect of putting down a portion of the purchase price when you close the deal can be too daunting.
But we have the answer to that problem. Introducing OneDown, your down payment solution.
With this program, only 1% of your down payment has to come from you. So for a $200,000 home, for example, your down payment contribution would only be $2,000.
Continue reading to learn more about OneDown, or apply for a pre-approval. A mortgage pre-approval allows you to understand how much you're likely to get approved for and will help you move quickly when you find the house you love.
OneDown blows up the myth of 20% down
For a long time, people have believed that they needed to pay 20% of the purchase price upfront as a down payment, but that’s not true. There are loan programs that will reduce your down payment to as low as 3%. But OneDown takes that a step further.
Here’s how it works:
- We’ll give you $2,000 or 2% of the purchase price (whichever is lower) in the form of a grant – which doesn’t need to be paid back – to help with the down payment.
- In order to be eligible, your income can’t be higher than 80% of the Area Median Income (AMI) of your location. For instance, the AMI for the Chicago area is $105,700. So, a household could make up to $84,560 (80% of AMI) and still take advantage of OneDown.
- Buyers with income 50% or lower of their AMI can receive up to a $2,500 grant.
- You can only use OneDown for your primary residence, and it has to be a single unit residence.
- Just because you’re using OneDown doesn’t mean that you can’t also use gift money from friends or family.
- You’ll be able to get lower cost mortgage insurance versus similar loan types.
- OneDown is a nationwide program, which means you can take advatange of it no matter where you live in the U.S.
On top of all of that, we’ll even give you a $1,000 closing cost credit to use toward lender fees when you finance a home purchase with OneDown.
Don’t let the myth of a 20% down payment keep you on the sidelines. OneDown gives you the flexibility and buying power to compete for and get into a home in today’s challenging market. Ask a loan officer about OneDown today.
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.