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Lower launches ONE mortgage program with as little as 1% down

The program pairs a 1% borrower down payment with a 2% lender grant, capped at $4,500, for eligible buyers buying single-unit primary residences.

Reported · Written up by our desk · Residential

Lower introduced a new mortgage product, ONE by Lower, designed to help eligible homebuyers reduce upfront down payment costs despite high home prices and elevated mortgage rates. HousingWire reports the program lets borrowers contribute as little as 1% toward a down payment while receiving a lender grant equal to 2% of the home’s purchase price, capped at $4,500.

Eligibility includes income at or below 80% of AMI, a 620 credit score, single-unit primary residence status, and a $375,000 max loan amount. HousingWire notes the grant does not need to be repaid and comes with no recapture provision or resale restrictions, and it does not create a second lien on the property.

Lower CEO Dan Snyder said in a statement that the company is investing millions and launching an “innovative” mortgage product to expand access to homeownership. HousingWire adds that Craig Montgomery, president of Lower’s retail division, said the program was built after the company found many borrowers qualify for mortgages based on income and credit but cannot save enough for a down payment.

Montgomery attributed the savings challenge to rising everyday costs, including gas prices and inflation. HousingWire reports that Lower said the grant will not affect borrowers’ interest rates or the pricing offered by its loan originators, and that it has budgeted and modeled the program’s financial impact, with possible modifications.

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