Rocket Mortgage has launched ONE+, a new 1% down home loan program. This is the third product targeting first-time homebuyers the lender has launched in six months.
ONE+ allows borrowers to make a down payment of just 1%. Rocket Mortgage will cover the remaining 2% needed to reach the required threshold for a conventional loan.
With ONE+, Rocket will also cover the borrower’s monthly mortgage insurance fee. Mortgage insurance is typically required with a down payment of less than 20% on a purchase.
ONE+ is available to homebuyers purchasing single-family homes, including manufactured homes. The borrower’s income must be equal to or less than 80% of their area median income.
Rocket Mortgage predicts that over 90 million people qualify for this program according to publicly available income data. Rocket Mortgage’s other recently launched programs include BorrowSmart Access and Purchase Plus. These programs help homebuyers in underserved communities by offering credits of $3,000 and $7,500 respectively.