Rocket Mortgage, the retail home lender division of Rocket Cos. (NYSE: RKT), has introduced ONE+, a 1% down home loan program designed to expand access homeownership for low- and moderate-income households.
According to the Detroit-headquartered company, the new program enables a borrower to make a down payment of 1% of the purchase price while Rocket Mortgage covers the remaining 2% needed to reach the required threshold for conventional loans. The company added that the program eliminates the need for the mortgage insurance fee which is traditionally required if a borrower puts less than 20% down on their purchase.
ONE+ is available to homebuyers purchasing single-family homes – including manufactured homes – whose income is equal to or less than 80% of their area median income. The company estimated that more than 90 million people could be eligible for the program.
“Rocket Mortgage prides itself on finding innovative solutions and lending programs that help clients achieve their goals in any market cycle. No other lender has a mortgage option that makes affordable homeownership possible for as many Americans as ONE+,” said Bob Walters, CEO of Rocket Mortgage. “We talk with people from all walks of life every single day – many of whom are ready to own a home, and could easily make the monthly mortgage payments, but are having trouble saving for a down payment. ONE+ is a response to that feedback and the latest example of Rocket’s commitment to creating programs that help make homeownership more attainable.”