Making a down payment is often one of the biggest barriers to homeownership. Even if the monthly mortgage payments on your dream home are manageable, saving thousands for a down payment takes time. Maybe you already have money saved, but don’t want to deplete your savings. Down payment assistance is a hot topic lately as interest rates continue to stay high while inventory remains low. The return of low down payment programs could be the solution for you.

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Can You Get a 1% Down Mortgage?

A down payment is your initial payment toward the purchase of your home. You may have heard that 20% of the purchase price is required at closing, but in reality, that’s not always the case. A variety of down payment assistance programs and grants are available from mortgage lenders as well as government-sponsored agencies that have made it easier and more affordable to cover certain upfront costs.

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Some home loan programs allow qualified borrowers to put down only a portion of the typical down payment percentage. Many independent mortgage brokers have access to affordability programs, such as United Wholesale Mortgage’s Conventional 1% Down Purchase program.* This option is available to homebuyers who meet certain income requirements.

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With this program, borrowers would pay just 1% of the home’s value at closing, while the lender would cover the additional 2%, up to $7,000. This additional 2% is considered down payment assistance and does not need to be repaid by the borrower at any point, helping the borrower’s down payment funds go further.

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Is A 1% Down Mortgage Too Good To Be True?

Understandably, given the financial crisis of 2008, certain down payment grants and affordability products have been subject to scrutiny and skepticism. However, it’s important to know that extensive regulations to protect borrowers are now firmly in place and enforced by the government and mortgage lenders.

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One percent down home loans are mortgage options meant to help qualified homebuyers buy a house with a minimal down payment based on some of the qualification requirements mentioned above, as well as needing a certain credit score. These safeguards help ensure that the financial stability needed for a mortgage is present so borrowers are reasonably able to pay back these loans, while still making homeownership more accessible with just a one percent down payment due at closing.

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Affordable Home Loan Options

If you don’t qualify for a one percent down program to buy a house with only one percent down upfront, there are other affordable home ownership programs you might be eligible for.

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If you or your spouse have served in the U.S. Armed Forces, you could qualify for a VA loan. If you’re looking to buy in rural areas, you might be eligible for USDA loans. Both offer the possibility of putting 0% down on those home purchases, while FHA loans come with a 3.5% down payment option.

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If interest rates are a concern for you on your journey to homeownership, rate buydowns could also be a solution. They allow you to pay upfront, sometimes using seller concessions, to secure a lower interest rate for the first few years of your home loan term.

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In today’s environment, down payment assistance and affordable home loan programs are helping thousands of homebuyers across the country get into a home. Connect with a local home loan expert at Mortgage Matchup to see if you qualify!

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*The principal, interest and MI payment on a $200,000 30-year Fixed-Rate Loan at 6.625% and 97% loan-to-value (LTV) is $1,370.62. The Annual Percentage Rate (APR) is 6.989% with estimated finance charges of $6,500. The principal and interest payments, which will continue for 360 months until paid in full, do not include taxes and home insurance premium, which will result in a higher actual monthly payment. Rates current as of 06/10/25. UWM pays the lesser of 2% or $7,000 of the down payment. Borrower pays 1% of the down payment (or remaining down payment needed if 2% exceeds $7,000). Subject to borrower approval. Some exclusions may apply.