Conventional Loans With 1% Down in Florida

A Conventional loan can go as low as 3% down for buyers with moderate incomes. On this program the lender pays 2% of the purchase price toward that 3%, up to $7,000, and you put in the rest. On most homes that leaves you with 1%.

The lender's 2% is a grant paid at closing. It isn't a second loan, so there's nothing extra to pay back and no second monthly payment. Your loan is still 97% of the price, with private mortgage insurance until you build equity.

Here's what your share looks like at different prices:

Above $350,000 the lender's part reaches its $7,000 cap, so your share rises a little. It's still well under the 3% a standard Conventional loan asks for.

Text 954-816-8820 a price and a zip code and we'll text back your 1%, or call 888-601-8344.

• Credit score: 620 or higher.
• Income: qualifying income at or under 80% of the area median income for the home's location.
• Purpose: a purchase, not a refinance.
• The home: a one-unit home that will be your primary residence. Send us the listing and we'll confirm the property qualifies before you make an offer.
• Loan size: within the standard conforming loan limit.
• Debts: total debt-to-income up to 50% with an automated approval.
• Education: if every buyer on the loan is a first-time buyer, one of you completes a short online homebuyer course before closing.

Everyone on the loan needs to live in the home. A co-signer who lives elsewhere doesn't work at 97% financing, so if you need one, FHA 100% financing is usually the better fit.

The limit is 80% of the median income for the area where the home is, so it's set by the property's address, not by where you live today. The same household can be under the limit in one county and over it in the next.

Only the income used to qualify for the loan counts. If your spouse isn't on the loan, their paycheck isn't part of the test. Overtime and bonus income count when they're used to qualify.

The fastest way to know is to give us the addresses or neighborhoods you're looking at. We'll check each one against your income in a few minutes, so you only shop where 1% down works.

FHA mortgage insurance usually stays for the life of the loan unless you refinance. Conventional private mortgage insurance doesn't. It drops off automatically on the date your loan is scheduled to reach 78% of the home's original value, and you can ask to have it removed once you reach 80%.

This program also carries reduced mortgage insurance coverage at 97% financing, which keeps the monthly premium lower than standard Conventional pricing. The stronger your credit score, the lower it goes.

So your payment drops later, with no refinance needed.

Yes. With less than 10% down, a seller can contribute up to 3% of the price toward your closing costs and prepaids on a Conventional loan. On a $300,000 home that's up to $9,000, which covers typical costs for most buyers.

Add a gift from family for anything left, and many buyers close bringing little more than their 1%. When you buy with our mortgage and South Florida Homes Realty together, our Homebuyers Outreach Program adds a credit at closing toward your costs too.

The seller sees a Conventional pre-approval, the same kind a buyer putting 3% down brings. Nobody at the closing table can tell the difference, and the seller is paid the full price either way.

What wins offers is a pre-approval that's already been checked against the income limit for that address. Yours will be, so the listing agent sees financing that's lined up before anyone signs.

We run both and show you the payment side by side. Here's how it usually breaks:

Not every lender offers a 1% down Conventional loan, and the ones that do don't always offer FHA zero down next to it. As a mortgage broker, we shop multiple wholesale lenders, so you get the program that takes your numbers instead of the only one on a single lender's shelf.

You'll work with one point of contact from your first call to the closing table, with no handoffs. We serve all 67 Florida counties, and we pick up at night and on weekends, because sellers don't wait for business hours.

Is the lender's 2% a loan I pay back?

No. The lender pays it at closing toward your down payment. There's no second mortgage and no second monthly payment.

How much cash do I need to close?

Your 1% plus closing costs and prepaids. A seller can pay up to 3% of the price toward those costs, and family can gift the rest, so many buyers bring little more than the 1%.

Do I have to be a first-time buyer?

No. Repeat buyers qualify. If every buyer on the loan is a first-time buyer, one of you takes a short online homebuyer course before closing.

What if my income is over the limit?

Then FHA 100% financing or FHA with 3.5% down is usually the move. FHA has no income limit, and we match you to assistance that takes your income. We'll show you the payment on each.

What kind of home qualifies?

A one-unit home you'll live in as your primary residence. Send us the listing and we'll confirm it qualifies before you make an offer.

When does the mortgage insurance come off?

Automatically on the date your loan is scheduled to reach 78% of the original value. You can ask for removal earlier, at 80%, with a good payment history.