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Get a 1% Down Payment Loan

A 1% Down Payment home loan is a mortgage program where the borrower is required to contribute only 1% of the purchase price as a down payment. We provide financing for 99 percent of the home's cost.

What is a 1% Down Payment Loan?

A 1% Down Payment home loan is a type of mortgage program where the borrower is required to contribute only one percent of the purchase price as a down payment. At Austin Capital Mortgage we provide financing for 99 percent of the home's cost.


This type of loan program aims to make homeownership more accessible by reducing the upfront cash requirement for buyers. It can be particularly beneficial for first-time homebuyers or those who may not have significant savings for a larger down payment.


You can take advantage of a program that allows for a 1% down payment on a home purchase, coupled with a 2% grant that doesn't require repayment. Additionally, this program eliminates the need for mortgage insurance. However, there are specific criteria to meet:


  • Income limits: The borrower's income cannot exceed 80% of the area's median income. For instance, in the Austin area, where the median income is $110,000, the limit would be $88,000 (80% of $110,000).

  • Non-restriction to first-time homebuyers: This program is not exclusively for first-time homebuyers. Whether you're a first-time buyer or have owned a home before, you can still qualify.

  • Maximum loan amount: The program sets a cap of $350,000 as the maximum loan amount for eligible borrowers.

  • Primary residence requirement: The loan is applicable only for primary residences, meaning it cannot be used for investment properties or vacation homes.

  • Limited to single-family homes: This program is specifically designed for single-family homes, excluding multi-unit properties or condominiums.


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Put your mortgage to work for you

Cash out

Leverage your investment and take advantage of the equity your home has built for years.

Great For

Renovating your home

Paying down high-interest debt

Use my equity

Lower payments

Increase your financial security by refinancing to lower your monthly mortgage payment.

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Increasing cash flow

Saving for retirement

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Reduce loan term

Why wait when you can refinance into a shorter term and pay your mortgage off.

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Reducing interest
Paying off mortgages faster

Reduce my term

FAQs

Got a question? We’re here to help.

  • What is a 1% Down Payment home loan?

    A 1% Down Payment home loan is a mortgage program where the borrower must contribute only 1% of the purchase price as a down payment while the lender finances the remaining 99 percent.

  • How does a 1% Down Payment home loan benefit borrowers?

    This loan program makes homeownership more accessible by reducing the upfront cash requirement, making it particularly beneficial for first-time homebuyers or those with limited savings.

  • Are 1% Down Payment home loans widely available?

    Availability may vary depending on lenders and financial institutions. It's recommended to research and compare different lenders to find those offering such loan programs.

  • What are the eligibility criteria for a 1% Down Payment home loan?

    Eligibility criteria may differ among lenders. Typically, factors like creditworthiness, income stability, and debt-to-income ratio are considered when assessing eligibility for this type of loan.

  • Do borrowers have to pay private mortgage insurance (PMI) with a 1% Down Payment home loan?

    PMI requirements can vary, but with a low downpayment, borrowers may be required to pay PMI to protect the lender in case of default. It's important to clarify this with the lender.

  • Can a 1% Down Payment home loan be used for any type of property?

    The eligibility of the loan for different property types can vary. It's essential to check with the lender if the loan program applies to the property you intend to purchase.

  • What are the interest rates like for 1% Down Payment home loans?

    Interest rates can vary depending on credit score, loan term, and market conditions. It's advisable to compare interest rates among different lenders to get the best possible rate.

  • How long does the loan approval process take for a 1% Down Payment home loan?

    The loan approval process duration can vary among lenders. Typically, it involves verifying your financial documents, conducting a credit check, and assessing the property. On average, it may take around 30-45 days, but this can vary.

  • Can down payment assistance programs be combined with a 1% Down Payment home loan?

    Some downpayment assistance programs can be combined with a 1% Down Payment home loan. It's essential to research and consult with lenders to understand the available options in your area.

  • Are there any potential drawbacks to a 1% Down Payment home loan?

    While a lower down payment can be beneficial, it's essential to consider the overall costs, including potential PMI and higher monthly payments. Ensuring the loan fits your financial situation and long-term goals is essential.

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