rocket mortgage 1 down reddit
In today’s real estate market, purchasing a home has grown more difficult, and many first-time buyers find it tough to save for a down payment due to rising housing prices and increased interest rates. One+, a mortgage program launched by Rocket Mortgage to assist address this issue, enables qualified purchasers to buy a property with just 1% down and Rocket provides an extra 2% grant to help cover the remaining down payment.
How the One+ Program Works
Traditionally, most conventional loans require at least a 3% to 5% down payment, making it hard for lower-income buyers to afford homeownership. With Rocket Mortgage’s One+ program:
- The borrower only needs to put 1% down on the home.
- Rocket Mortgage provides an additional 2% grant toward the down payment.
- This effectively gives the buyer a total of 3% equity at closing.
- The loan does not require private mortgage insurance (PMI), which helps reduce monthly costs.
The goal of this initiative is to make homeownership more attainable, particularly for those who have stable incomes but struggle to save for a large upfront down payment.
Who Qualifies for Rocket Mortgage’s One+ Program?
To be eligible for One+, buyers must meet specific criteria:
- Income Limit: Applicants must have an income equal to or below 80% of the area’s median income (AMI), as defined by government housing data.
- Loan Type: The program is designed for conventional home loans and is not available for FHA, VA, or jumbo loans.
- Primary Residence Requirement: One+ is only available for owner-occupied homes—investment properties do not qualify.
- Credit and Debt-to-Income (DTI) Requirements: While Rocket Mortgage has not disclosed an exact minimum credit score, borrowers generally need a fair to good credit score (typically 620 or higher) and a manageable DTI ratio.
The Pros and Cons of One+
Like any mortgage program, One+ has its advantages and potential drawbacks.
✅ Pros:
✔ Lower upfront cost: Buyers don’t need to save as much money before buying a home because they only need to put down 1%.
✔ No PMI needed: When compared to other low-down payment financing alternatives, this can save borrowers hundreds of dollars every month.
✔ Greater accessibility: This initiative facilitates a quicker entry into the housing market for individuals and families with moderate incomes.
❌ Cons:
⚠ Higher loan amount: Since buyers put down less, they take on a larger loan, leading to higher monthly payments.
⚠ Income restrictions: Not all buyers will qualify, as the income cap limits eligibility.
⚠ Potential financial risk: Lower down payments mean less immediate equity, which could be risky if home values decline.
What Are Homebuyers Saying? (Reddit Reactions)
Discussions on Reddit and other online forums show mixed opinions on the One+ program.
- Supporters argue that this is a great opportunity for those who are financially responsible but struggle to save a large down payment. They highlight the no PMI feature as a major benefit.
- Skeptics worry that low down payment loans could put borrowers at risk if they face financial hardship or if home values decrease. Some also compare this to pre-2008 lending practices, though One+ requires credit checks and stable income verification to prevent risky lending.
- Others recommend caution, suggesting buyers should still aim for a larger down payment if possible to reduce overall loan costs.
Final Thoughts: Is One+ a Good Option for You?
Rocket Mortgage’s One+ program offers a unique opportunity for low- to moderate-income buyers to achieve homeownership with minimal upfront costs. The 1% down payment and 2% lender contribution, combined with no PMI, make it an attractive option for those who qualify.
However, buyers should carefully consider their long-term financial stability before choosing a low-down-payment mortgage. While One+ makes homeownership more accessible, higher monthly payments and less initial equity could pose challenges if the housing market shifts or personal finances change.
Before applying, potential buyers should:
✅ Review their credit score and debt-to-income ratio.
✅ Compare One+ to other loan programs (such as FHA or USDA loans).
✅ Ensure they can comfortably afford the monthly mortgage payments.
✅ Consult a financial advisor or mortgage expert for personalized advice.
For those who qualify and are financially prepared, One+ could be a stepping stone to homeownership—without the burden of a hefty down payment.
