Great Loan Program: 0% – 1% Down, No Mortgage Insurance

 In Different Types of Loans, First-Time Home Buyers, Qualifying for a Mortgage

About a month ago, we announced that we had a new conventional loan program that requires either 0% or 1% down, and it has no mortgage insurance.  It’s a great loan program, but it was only available to federal, state, county and city employees, teachers, firefighters, police officers, military, EMTs, nurses, and paramedics.  That’s a lot of people, but it also left a lot of people out.

Here’s the great news: it is now available to everyone, regardless of your profession.

Loan Program

This loan program is actually 2 loans.  The first loan is a conventional loan (requires either 3% or 5% down), and the second loan is for 4% of the purchase price.  So if you only put 3% down, the second loan will be enough to pay the entire down payment, and you will have 1% left over to cover some of your closing costs.

And check this out – there is NO mortgage insurance required!


  • The first mortgage is for either 95% or 97% of the lesser of the sales price or the appraised value.
  • The second mortgage is for 4% of the lesser of the sales price or the appraised value.
  • There is no mortgage insurance required.
  • You can earn up to 140% of the Area Median Income, which means if you earn less than $125,860 and the house is in the Denver metro area, you meet the income requirements.
  • The second mortgage is at the same rate as the first mortgage (usually, second mortgages are at much higher rates).
  • The second mortgage is an interest-only loan and is only due in 30 years, or when you sell the house, refinance the mortgage, pay it off, or transfer title to someone else.
  • You need a 700 credit score (if you don’t think you have that, call us and we can tell you how to get a 700 score).
  • The property you buy must be a primary residence (a house you intend to live in).
  • At least one borrower must be a first-time homebuyer, which means they can’t be on title to a house for the previous 3 years.  If you owned a house before that, it’s OK – you still qualify.
  • The house must be a 1-unit property.  Condos and townhouses are OK.

If you want to buy a house, but have very little money for the down payment, contact us today.  You may soon be a homeowner!

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