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You’ve done your research and know you can manage the mortgage payment and maintenance costs. The only hurdle left is the down payment, which can be quite significant since home prices continue to rise. However, with ONE+ you can purchase a home with just a 1% down payment. Additionally, you’ll receive a 2% grant from the lender.

In this article, we’ll explore how this program operates and who is eligible for it.

Advantages of ONE+ Program

This loan option offers several key advantages. The most notable is the ability to enter homeownership with as little as 1% down. The program also provides a grant equivalent to 2% of the home's purchase price. This means you would start with 3% equity in your new home. Eligible clients can contribute up to 3% toward their down payment while still benefiting from the 2% grant.

This program is open to both first-time and seasoned home buyers, with no limitations on your current location or where you plan to move. It is available across the entire country.

Let’s illustrate a sample loan scenario using a $250,000 purchase price. This is structured as a 30-year fixed mortgage with an interest rate set at 7%.

You’ll provide a down payment of $2,500, which is calculated as 1% of the purchase price ($250,000 × 0.01 = $2,500). Lender contributes 2% of the loan amount, amounting to $5,000 ($250,000 × 0.02). Your monthly payment for principal and interest totals $1,613.36.

Qualifying for ONE+ Program

Since this loan program is designed to meet affordable housing objectives, there are specific eligibility criteria to consider:

Your income must not exceed 80% of the median income for the area where you plan to buy. For instance, in Macomb County, Michigan, the area’s median income is $90,800. Therefore, your qualifying income must be no more than $72,640 (calculated as $90,800 × 0.8).

A qualifying FICO® Score of 620 or higher is required.

This program applies only to single-unit primary residences.

With the addition of the 2% grant, your initial down payment must not exceed 5%.

The maximum loan amount for this conventional option is capped at $350,000.

Another crucial point to note is regarding income limits. This refers to qualifying income. If you can satisfy the debt-to-income ratio (DTI) requirements without relying on bonus income or including another borrower on the loan, such income does not have to be factored into your qualifying income, offering you some flexibility.

Begin Your Mortgage Journey Now

Take the first step by applying online for personalized quotes along with real interest rates and payment options.

Find out if you are eligible for ONE+

Frequently Asked Questions About ONE+

Now that you understand the basics, let's take a moment to address any questions you might have about this option.

Is this really a 1% down option?

Yes, it is. However, you'll start your loan with 3% equity. You bring 1% to closing, and Rocket Mortgage contributes a 2% grant.

Are temporary buydowns available for this product?

Yes, temporary buydowns can be used to lower your interest rate for the first year or more of your loan. These buydowns must come from an eligible source, such as the builder, seller, or a real estate agent.

What if I don’t qualify for this program? Are there other low down payment options?

Yes, there are other low down payment options based on your situation. For instance, if you have a higher income, you can still put down as little as 3% on a conventional loan as a first-time home buyer. If your credit score is 580 or above, you can put down 3.5% for an FHA loan.

The Bottom Line

We understand that the down payment can be a significant hurdle for home buyers, even when they can afford the mortgage payments. With ONE+ by Rocket Mortgage, you can secure a mortgage with as little as 1% down. Additionally, with a 2% grant from us, you start with 3% equity.

This option is available to individuals earning less than 80% of the area median income and having credit scores of 620 or higher. You can purchase a single-unit primary residence anywhere in the country.

Does this sound appealing to you? You can apply online or reach out to one of our Home Loan Experts at 817-886-2240.

Clients must provide a minimum down payment of 1%, with a maximum of 3%. Lender will contribute an extra 2% towards the down payment, up to $2,000. The maximum grant amount is capped at $7,000. This offer is applicable only for primary residences and conventional loan products, with a maximum loan limit of $350,000. Starting January 2, 2024, the cost of the mortgage insurance premium will be passed on to the client. This offer is for home buyers whose qualifying income does not exceed 80% of the area median income based on the property's county. It cannot be combined with other discounts or promotions and cannot be applied retroactively to loans that have already closed or have a locked rate. Please note, this is not a guarantee to lend. Rocket Mortgage reserves the right to modify or cancel this offer at any time, and additional conditions may apply.

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