With home affordability being top of mind for prospective home buyers, the One+ loan program allows clients to come out of pocket with very minimal upfront costs. The One+ loan is the latest in a long line of recently released loan products designed to make homeownership more available to everyone. While there are some constraints associated with qualifying for this program, it is certainly worth inquiring about with any of our mortgage loan officers.
The One+ mortgage loan uses conventional loan guidelines with a few additional requirements and restrictions.
This product is only available for single-unit primary residence purchases with a minimum fico score of 620 and a maximum debt-to-income ratio of 50%
The maximum loan amount allowed is limited to $350,000
This is important to note as it is lower than the national conforming loan limit of $726,200 as of 2023.
Another major requirement of this program is that applicants have a qualifying income that is less than or equal to 80% of the area median income.
In order to determine your area median income you can use the Fannie Mae lookup tool at https://ami-lookup-tool.fanniemae.com/amilookuptool/.
There are some workarounds with this especially if you earn commission, bonus, or overtime income so please consult a loan officer to be sure.
Other Cool Features
- This loan program features a 2% down payment assistance grant which puts the loan-to-value at 97% immediately upon purchase.
- It is not limited to first-time home buyers
- Available for certain manufactured homes (must put down 3%)
- There is No Mortgage Insurance