For many first-time homebuyers, the down payment is the biggest challenge. Traditional mortgages often require at least 5% or even 20% down, which can mean saving a large amount of cash.
Now, there’s a great opportunity — the 1% Down Payment Program — allowing you to buy a home with much less money out of pocket!
Let’s look at a real-life example to see how this program works.
Case Details
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Property Address: 907 W Peach Hollow Cir, Pearland, Texas, 77584
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Purchase Price: $267,400
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Borrower’s Credit Score: 780
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Closing Date: September 29, 2025
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Interest Rate: 6.554%
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Estimated Monthly Principal & Interest Payment: $1,648.67 (excluding taxes and insurance)
How Does the 1% Down Payment Work?
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Purchase Price: $267,400
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Your Down Payment (1%): $2,674
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Lender Credit (2%): $5,348
This 2% lender credit goes directly toward your closing costs, reducing the amount of cash you need to bring to the table.
On the Loan Estimate (page 2), you’ll see a highlighted section showing this $5,348 credit applied.
How Much Cash Do You Actually Need to Close?
In this example, the estimated cash to close is about $7,187.
But with:
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An appraisal waiver (more than 50% of borrowers receive this)
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Additional credits from the title company (many title companies offer some credits)
Your final cash to close could be as low as $5,000–$6,000!
What About the Monthly Payment?
For this example:
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Monthly Principal & Interest: $1,648.67 (not including taxes and insurance)
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If you close on September 29, your first payment will be due on November 1.
Who Qualifies for This Program?
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First-time homebuyers
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Household income under 80% of the Area Median Income (AMI)
✅ We’ve included the Loan Estimate for this transaction as a reference.
If you’d like to check your eligibility or get an estimate of your monthly payment and cash to close, contact us for a free qualification review. We’ll help you make your dream of homeownership a reality!
