Conventional 1% Down Payment Program, Texas Premier Mortgage:
Empowering Homeownership: Texas Premier Mortgage’s Innovative 1% Down Payment Program
Texas Premier Mortgage, now offering a 1% Down Payment Program, represents a game-changing opportunity to help more borrowers achieve their dream of homeownership. This unique program is designed to break down financial barriers and create accessible pathways to home buying for individuals and families with limited savings.
Program Fundamentals
The Conventional 1% Down Program is specifically crafted for borrowers with modest incomes, targeting those who earn 80% or less of the Area Median Income (AMI). This strategic approach ensures that the program supports community members who might otherwise struggle to enter the housing market.
Key Program Specifications:
- Purchase Only Transaction
- Minimum FICO Score: 620+
- Required Loan-to-Value (LTV): 97%
- Loan Amounts: Up to Conforming Loan Limits
Down Payment Structure
The program’s most attractive feature is its innovative down payment mechanism. Here’s how it works:
- Borrower Contribution: 1% of the purchase price
- Texas Premier Mortgage Contribution: 2% (capped at $7,000)
- Total Down Payment: 3%
This approach allows borrowers to minimize their upfront cash investment while still meeting conventional loan requirements.
Benefits for Borrowers
- Reduced Initial Cash Requirement Borrowers can preserve their savings for other critical expenses such as:
- Furniture
- Moving costs
- Home repairs
- Potential rate buydown for long-term savings
- Faster Path to Homeownership By reducing the down payment barrier, borrowers can enter the housing market sooner, avoiding prolonged saving periods.
Mortgage Insurance Options
The program offers flexibility in mortgage insurance:
- Borrower Paid Monthly (BPMI)
- Lender Paid Mortgage Insurance
Additional Program Features
Homebuyer Counseling While not mandatory for all borrowers, first-time homebuyers (defined as no property interest in the last 3 years) have specific counseling requirements:
LPA Pathway Options:
- Free homebuyer education courses
- Online homeownership education programs
- Programs meeting National Industry Standards
- Freddie Mac CreditSmart programs (specific modules required)
DU Pathway:
- Must complete counseling through Fannie Mae approved agencies
Rate Buydown Opportunities
The program supports temporary rate buydowns, providing additional affordability mechanisms for borrowers. For instance, a $200,000 30-year fixed-rate loan at 6.625% with 97% LTV would result in a principal, interest, and MI payment of $1,370.62.
Strategic Advantages for Texas Premier Mortgage and its clients:
- Help more buyers start building wealth instead of renting
- Build stronger relationships with clients looking for Grant Programs
- Serve more community members
- Support local homeownership initiatives
Considerations and Limitations
- Purchase transactions only
- Not available for TRAC properties
- Non-occupant co-borrowers not permitted
- Must meet income and property eligibility requirements
Conclusion
The Texas Premier Mortgage Conventional 1% Down Payment Program is a powerful tool that expands homeownership opportunities. By reducing upfront costs and supporting lower-income borrowers, this program aligns with broader community development goals.
For more information about this program and the benefits and loan options and how it may apply to you, please contact us direct at 281-627-4222 or submit the “Quick Quote” form on this page.
