Conventional Loans - 1% Down Payment Program
First Time Homebuyers Program
- Financing: The loan program offers 97% financing, which means borrowers are only required to make a 3% down payment.
- Lender rebate: The lender provides a rebate of 2%, effectively reducing the down payment to 1%.
- Discounted Monthly Mortgage Insurance (PMI): The program offers discounted rates for private mortgage insurance, which is typically required for loans with less than a 20% down payment.
- Income restrictions: Borrowers must have a qualifying income that is restricted to 80% of the Area Median Income (AMI). The specific AMI can be determined using an online look-up tool, such as one provided for Milwaukee or Waukesha County.
- Qualifying income: Only the borrower's income is considered for qualification purposes, which means other household members' incomes are not taken into account.
- FICO scores: The loan program accepts FICO scores as low as 620. FICO scores are a measure of an individual's creditworthiness.
- Lower interest rates: The program offers lower interest rates compared to conventional loans, potentially resulting in lower monthly mortgage payments.
- No prepayment penalty: Borrowers are not subject to any penalties for paying off the loan early.
- Homebuyer education: Participation in a homebuyer education program is required as part of the loan process. This program aims to provide borrowers with essential knowledge and skills related to homeownership.
Area Median Income:
Milwaukee & Waukesha County
100% $96,100
80% $76,880
50% $48,050
Dane County (Madison Area)
100% $111,800
80% $89,440
50% $55,900
