New 1% Down Loan Program Puts Homebuying Within Reach

For many would-be home buyers, coming up with a down payment is the biggest barrier to purchasing a home. Even coming up with the 3.5% down payment necessary for an FHA loan can be difficult. As such, Guaranteed Rate’s new Double Match program could be welcome news for those who don’t currently own a home and want to take advantage of today’s low interest rate. The Double Match loan program requires a buyer to contribute one percent of the purchase price of a home, with Guaranteed Rate paying an additional two percent for a total of 3 percent down with a conventional loan.

The two percent down being offered by Guaranteed Rate’s Double Match acts as a grant, so this is essentially free money for someone utilizing the deal. For the borrower, this program can mean it’s possible to purchase a condo with just a few thousand dollars down (depending on price). Unlike some other down payment assistance programs, the grant is completely forgivable and doesn’t need to be repaid if the buyer moves, refinances, or sells.

The program can be used to purchase condos or single family homes with loan amounts of $417,000 or less. With low interest rates for mortgages, it’s possible for renters to stop paying their landlord’s mortgage and begin paying their own. Your monthly payment on a loan of around $300,000 could be as low as $2,100.00 (see illustration below), which is comparable to what many renters pay in Long Beach and surrounding areas. Based on our last market update for Downtown and East Village, this is actually a great time to have your cake and eat it too with access to city life, public transport, and overall potentially pay less to own a home downtown than you would to rent one.

What Do You Need To Do To Qualify?

As with most mortgages,  credit score is important, as well as your current income and debt. The minimum credit score is 680. There is an income limit, though many areas of Long Beach and surrounding community are exempt from the income limit. Check with your Realtor or your Guaranteed Rate mortgage lender to see whether this program could benefit you, and whether properties you’re considering would qualify as well.

Here’s a sample of what you could be looking at in pricing, but please note that interest rates change frequently, and this is not a quote.

 

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Need someone to talk to about what you can afford, or want to pre-qualify for a loan? We’re happy to advise you on the neighborhoods and necessities you’re looking for in a home of your own, and local Guaranteed Rate lender Andrew Soss’ team is available to walk you through the steps.

About the Author

Shannon Jones has been selling real estate since 1998 and specializes in listing and marketing homes. She has consistently been one of the top Realtors in the Long Beach area. Prior to her award-winning career in real estate with the Shannon jones Team, Shannon has had successful careers in journalism and public relations. She holds a bachelors degree from UC Irvine and a masters degree from UC Berkeley. Shannon holds E-Pro, CDPE (Certified Distressed Property Expert), and PSC (Pre-Foreclosure Specialist) certifications. Shannon is very personable and maintains a very strong moral compass, always putting the best interest of home buyers/sellers above monetary goals. A California native, Shannon enjoys gardening, travel, reading, cooking and poker when she’s not selling homes MY DESIGNATIONS Lic# 01247705 | CDPE (Certified Distressed Property Expert) | E-Pro | PSC (Pre-Foreclosure Specialist) MY SERVICE AREAS Anaheim Bellflower Buena Park Carson Cerritos Cypress Downey Fountain Valley Garden Grove Huntington Beach La Palma Lakewood Long Beach Los Alamitos Los Angeles County Norwalk Orange County Rossmoor San Pedro Seal Beach Signal Hill South Bay Westminster

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