Unlocking Homeownership with Just 1% Down

Unknown Speaker

Hey folks, welcome back to the Reliant Mortgage Solutions podcast. I'm Sean, and as always, I'm joined by my partner in mortgage mayhem, James. You ready to talk about something that could really change the game for a lot of folks out there?

James Eveld

Absolutely, Sean! This is one of those programs that gets me genuinely excited. We're talking about the Conventional 1% Down Program, right? It's honestly wild how accessible this makes homeownership for people who thought it was out of reach.

Unknown Speaker

Yeah, and, you know, I’ve been in this business a long time, and I don’t say that lightly. So, let’s break it down. The way this program works is pretty straightforward, but it’s also, well, a little different from what most folks expect. The buyer puts down just 1% of the purchase price, and then the lender pitches in another 2%, up to $7,000. That gets you to the 3% down payment you need for a conventional loan. It’s not magic, but it sure feels like it if you’ve been struggling to save up that big chunk of cash.

James Eveld

Yeah, and just to be clear, that 2% from the lender isn’t a loan, it’s a grant. You don’t have to pay it back. So, if you’re buying, say, a $300,000 home, you’d only need to come up with $3,000 for the down payment, and the lender could cover up to $6,000 more. If the 2% is more than $7,000, you would have to cover the difference. But for most first-time buyers, that’s a huge help and it could really make all the difference.

Unknown Speaker

Right, as always, there are some eligibility boxes you gotta check. Your income has to be under 80% of the Area Median Income. We will take care of checking this for you but just know that in an area like Cobb County, that income limit would be around 90 thousand. Keep in mind that this number includes the collective income of everyone on the loan, not the entire household income.

James Eveld

Also, You will need a minimum credit score of 620, and the property has to be a primary residence—so no investment properties or vacation homes. It’s gotta be a single-family home or condo, not a duplex or manufactured home. And, uh, the loan amount has to be within conforming loan limits, but I dont think that a loan program like this one would ever really run into that issue.

James Eveld

Sean, you had a couple in Roswell, right? They were able to get into their first home with this program?

Unknown Speaker

Yeah, I did. They were a young couple, just starting out, and honestly, they didn’t have much in savings. I remember the wife telling me she thought they’d have to wait years before they could even think about buying. But with this 1% down program, they scraped together what they needed, and the lender’s contribution made all the difference. They closed on a place they loved, and, well, I think I got more hugs at that closing than any other in my career. It’s moments like that that remind me why I do this.

James Eveld

That’s awesome, Sean. And honestly, that’s what this is all about—helping people who are right on the edge of homeownership get over the hump. Let’s talk about who really benefits from this, because there are some extra perks for certain buyers.

James Eveld

So, the main folks who benefit are those whose income is under 80% of the Area Median Income. But if you’re under 50% of the AMI, there’s an extra twenty five hundered dollar incentive you can get. That’s money you can use for closing costs, moving expenses, or even to buy some furniture for your new place. It’s not just about getting in the door—it’s about making the move a little less stressful.

Unknown Speaker

Yeah, and I think that’s a point a lot of people miss. It’s not just the down payment. When you’re buying a home, there are all these other costs—closing fees, moving trucks, maybe you need a new fridge or a couch. That extra $2,500 can be a lifesaver, especially for folks who are really stretching to make it work. And, you know, it’s not just about individuals. This program is helping entire communities that have been underserved by traditional lending. It’s a step toward leveling the playing field, even if it’s just a small one.

James Eveld

Yes, and I wanna point out something a lot of people don’t realize. This 1% down program is actually built on top of two other programs—HomeReady and Home Possible. So, if you qualify for the 1% down, you’re also getting all the benefits that come with those, like lower mortgage insurance costs, and capped loan-level price adjustments, which can mean better rates and lower fees. It’s like a two-for-one deal, but for mortgages. I mean, who doesn’t love a good deal?

Unknown Speaker

That’s a good way to put it, James. I always tell clients, don’t be afraid to ask how these programs stack up. Sometimes the details get a little wonky, but the bottom line is, if you’re a first-time buyer with a moderate income, this could be the best shot you’ve got at getting into a home without draining your savings. And if you’re under that 50% AMI threshold, that extra incentive can really tip the scales as well.

James Eveld

Yeah, and I’ve seen it make a real difference for people who thought they’d be renting forever. It’s not just about the numbers—it’s about giving people a shot at building equity and putting down roots. And, honestly, that’s why I got into this business in the first place. Okay, so let’s talk about what it actually takes to qualify and what the process looks like, because I know a lot of folks are probably wondering what it would take to get started.

Unknown Speaker

Alright, so, let’s get into the nitty-gritty. like we covered earlier, this program follows all the HomeReady and Home Possible guidelines. That means you need a minimum FICO score of 620, and you have to be under 80% of the Area Median Income.

James Eveld

And don’t forget, if you’re a first-time homebuyer, you’ll need to complete a homeownership education course. It’s not as scary as it sounds—it’s usually online, and it just walks you through the basics of budgeting, the buying process, and what to expect as a homeowner. It’s actually pretty helpful, even if you’ve already done a ton of research on your own.

Unknown Speaker

Yeah, and you’ll need to gather up your documentation—pay stubs, tax returns, bank statements, all that good stuff. It’s not the most fun part, but it’s necessary. And, uh, if you’re not sure where to start, that’s what we’re here for. I always tell folks, don’t be afraid to ask questions, even if you think they’re silly. There’s no such thing as a dumb question when it comes to your biggest investment.

James Eveld

I Totally agree. And if you’re wondering about the steps, it’s pretty simple: reach out to a lender—hopefully us!—and we’ll walk you through checking your eligibility, running the numbers, and getting you pre-approved. From there, it’s just a matter of finding the right home and making sure all the paperwork lines up. If you hit a snag, we’ll help you figure it out. That’s what we do.

Unknown Speaker

And, you know, if you’re listening and thinking, “This sounds great, but I’m not sure if I qualify,” just give us a call or shoot us an email. We’re happy to talk it through, no pressure. Sometimes the guidelines can feel overwhelming, but that’s why we’re here—to help you make sense of it all.

James Eveld

Alright, that’s gonna wrap it up for today’s episode. If you’ve got questions about the 1% down program for anything else mortgage-related, reach out to us. We’ll be back soon with more tips and stories to help you on your homeownership journey.

Unknown Speaker

Thanks for tuning in, everyone. James, always a pleasure. Take care, folks, and we’ll catch you next time on the Reliant Mortgage Solutions podcast.

James Eveld

See y’all next time!