Are you considering buying a home but are concerned about the upfront costs? At KTL Performance Mortgage, we’re excited to share an amazing opportunity to make homeownership more affordable—the 1% Down Conventional Loan Program!
This program allows qualified homebuyers to put down just 1%* of the purchase price, with our partner lender contributing an additional 2%—up to $7,000. It’s a straightforward way to save money and increase your purchasing power.
What is the 1% Down Conventional Loan Program?
This program is an add-on to Freddie Mac’s Home Possible and Fannie Mae’s HomeReady loan products. It offers the benefits of a 3% down conventional loan but requires as little as a 1% investment from the buyer. Plus, there’s no second lien involved, making it simple and effective.
Who Qualifies?
This program is designed for a wide range of homebuyers! The basic qualifying requirements include:
- First-time and repeat homebuyers
- Buyers with a FICO credit score of 620 or higher.
- Those purchasing a primary residence (single-unit properties only).
- Buyers whose qualifying income is at or below 80% of the Area Median Income (AMI) for the property’s location.
What is the 1% Down Conventional Loan Program?
This program is an add-on to Freddie Mac’s Home Possible and Fannie Mae’s HomeReady loan products. It offers the benefits of a 3% down conventional loan but requires as little as a 1% investment from the buyer. Plus, there’s no second lien involved, making it simple and effective.
Who Qualifies?
This program is designed for a wide range of homebuyers! The basic qualifying requirements include:
- First-time and repeat homebuyers
- Buyers with a FICO credit score of 620 or higher.
- Those purchasing a primary residence (single-unit properties only).
- Buyers whose qualifying income is at or below 80% of the Area Median Income (AMI) for the property’s location.
*The principal, interest and MI payment on a $200,000 30-year Fixed-Rate Loan at 6.625% and 97% loan-to-value (LTV) is $1,370.62. The Annual Percentage Rate (APR) is 6.989% with estimated finance charges of $6,500. The principal and interest payments, which will continue for 360 months until paid in full, do not include taxes and home insurance premium, which will result in a higher actual monthly payment. Rates current as of 06/10/25. Lender pays the lesser of 2% or $7,000 of the down payment. Borrower pays 1% of the down payment (or remaining down payment needed if 2% exceeds $7,000). Subject to borrower approval. Some exclusions may apply.
