Riverbank Finance is a locally owned mortgage company in Grand Rapids, MI that offers mortgage loans for both refinancing and new home purchases. Our extensive list of mortgage programs allows us to offer some of the most competitive mortgage rates and home loan options in Michigan. Our contracts with several banks and mortgage lenders offers a line-up of loan programs for perfect credit borrowers and even clients with bumps in their credit past. We take pride in our superb customer service. This has proven to be a winning combination to meet the needs of our borrowers.

Riverbank Finance LLC is pleased to offer the Conventional 1% Down Mortgage with Equity Boost home loan program. In this program, you can purchase a home with 3% equity, but only 1% down payment. How does that work? You, the buyer, contribute 1% and we, your lender, contribute 2% giving you a total of 3% equity at close.

History of the Conventional 1% Down Home Loan

The 1% down mortgage program is an extension of the current 3% down home loans. This program emerged in 2016 as an expansion of the Home Possible Advantage 3% down mortgage program. Currently this program is only available through Freddie Mac as part of its efforts to make homes afforable to new buyers. This new loan options allows you to purchase a home for as little as one month’s rent. Why pay a landlord when you can invest in your own property?

1% Down Home Loan Requirements

As with any mortgage, there are restrictions and qualifications for eligibility. Borrower(s) must meet all conventional home loan requirements for credit score, income and the subject property. Below are a few program specific requirements:

NOTE: *Income limited to 100% of Freddie Max Area Median Income Limits (AMI), unless property is located in an underserved area census tract. Click here for more information about Michigan Income Limits for the 1% Down Mortgage.

  • Income limits may apply
  • Maximum Loan Amount of $453,100 (Conforming Loan Limits)
  • Single Family homes only
  • Borrower(s) must occupy the property as primary residence
  • First Time Home Buyer online course required if borrowers have not owned a home in last 3 years
  • Borrower(s) may not have ownership interest in any other residential dwellings
  • Borrower(s) may receive their 1% down payment as a gift
  • 720+ Credit score required
  • 50% maximum Debt to Income (DTI) limits
  • 2% Gift from lender can be used for down payment only (Up to $5000 Max Gift)

Guidelines and Requirements for the 1% Down Home Loan

To be eligible for the 1% down home loan you must meet the standard Conventional Mortgage guidelines. Debt-to-income ratios must be in line, the property must meet minimum standards and your credit must be acceptable to be approved for Conventional Financing.