More and more banks have been offering very low down payments for loans. For example, big banks like Bank of America have new programs. These programs allow for more first time home buyers to purchase real estate. However, low down payment loans from Quicken have gone under the radar. Late last year, Quicken Loans started offering 1 percent down payments on loans.
“We require 1 percent from a consumer and we give the consumer a 2 percent grant, so the client has 3 percent equity immediately,” Bill Banfield, Quicken Loans’ vice president of capital markets told HousingWire.
They are a part of Freddie Mac’s Home Possible Advantage program.
“The market has changed so much since the crisis. Rules are so much different now. You really can’t roll out a program like this without thinking it through completely,” Banfield said to HousingWire.
These loans can only be applied to single-family homes or condos. They cannot be used towards second home or investment properties. Recipients must have a FICO score of 680. They must also earn less than the median income for their county, and their debt-to-income ratio must be 45 percent or less.
“We want to try to help people and do it in a smart way,” Banfield told HousingWire. “For us, it was really a question of, if you want to provide access to credit, how do you do it responsibly? How can you help people? If first-time buyers are struggling, are there smart ways to help them while still balancing access to credit? … We wanted to have a conventional option to get people into more homes.”
Options like these low down payment loans from Quicken Loans can really help first time homebuyers. If you are a first time homebuyer in Miami, look no further than RE/MAX Paradise. We have many gorgeous homes for you to choose from in many areas of the city. Also, contact our agents for any advice on financing your purchase.