Chicago-based mortgage lending and digital financial services company Guaranteed Rate has introduced OneDown, its mortgage loan featuring down payment options as low as 1%, as well as an additional 2% contribution towards that down payment (or up to $2,000 – whichever is lower). In addition, OneDown offers borrowers a $1,000 contribution toward lender fees.
OneDown is available for real estate transactions involving single-family residences, including condominiums. The program is especially intended for first-time borrowers or homebuyers with an area median income (AMI) under 80%. No geographic restrictions apply.
“OneDown is Guaranteed Rate’s response to the ongoing effect of stubborn inflation and higher interest rates,” says Kate Amor, senior vice president at Guaranteed Rate. “We want to not only make homeownership less intimidating but make it possible for more families by offering down payment options as low as 1%.”
By removing the need for a big lump sum in the form of a down payment, commonly as much as 20% of a home’s purchase price, Guaranteed Rate presents an affordable option to potential buyers that dream of homeownership.
Amor also notes that seller-paid temporary buydown options may be available for borrowers, offering additional flexibility through lower rates and payments in the early years of the mortgage.
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