If saving for a down payment has been holding you back from buying a home, you’re not alone. With home prices still high and rents climbing, saving tens of thousands of dollars can feel impossible — especially for first-time homebuyers.
That’s where VP Capital Lending’s 1% down payment mortgage comes in. You bring just 1% down, we contribute another 2% as a lender credit, and you start with the 3% equity needed for a conventional loan — without draining your savings.
Quick Facts: 1% Down Loan Program
- 1% from you + 2% from us = 3% down on a conventional purchase.
- Lender credit covers the extra 2% — no repayment required.
- Conventional loan for primary residences (not FHA/VA, not investment/second homes).
- PMI applies under 20% down and can be removed once you reach 20% equity.
- Fast closings: many purchases finish in about 15–20 days.
How the 1% Down Mortgage Works
- Apply & pre-qualify: quick review of credit, income, and your target price.
- Bring 1% down: we add a 2% lender credit to reach the 3% minimum on a conventional loan with 1 percent down.
- Lock your rate & appraise: we process, underwrite, and clear conditions.
- Close fast: typical purchases close in 15–20 days.
Why This Matters in 2025
With mortgage rates hovering near 7% and affordability stretched, a 1% down payment mortgage can be a game-changer.
- Buy sooner instead of waiting years to save up.
- Keep cash reserves for closing costs, moving, and emergencies.
- Build equity immediately — you own 3% of your home on day one.
- Access competitive rates even without a high income.
Who Can Qualify for a 1% Down Mortgage?
You may qualify if:
- You meet the credit score requirement (620+).
- Your income is ≤80% of the Area Median Income, unless buying in an eligible census tract.
- You’re purchasing a primary residence (no second homes or investment properties).
Run the Numbers Before You Buy
Before making an offer, check what your monthly payment will look like.
- Mortgage Calculator Estimate your monthly payment, including taxes and insurance.
- Refinance Calculator Already a homeowner? See how much you could save.
How to Get a 1% Down Payment Mortgage
- Check eligibility: credit score (620+), income limits, and primary residence.
- Get a quick quote: we’ll confirm your rate, payment, and total cash to close.
- Upload docs: ID, income, assets — all handled securely online.
- Lock and appraise: we order the appraisal and move you to clear-to-close.
- Close fast: typical purchases close in 15–20 days.
Frequently Asked Questions
What is a 1% down mortgage program?
VP Capital Lending’s 1% Down Program lets you buy a home with just 1% down payment from you. We contribute an additional 2% as a lender credit, giving you the full 3% equity required for certain conventional loans.
Who can qualify for a 1% down home loan?
Buyers planning to purchase a primary residence who meet program income limits (often ≤80% of the Area Median Income). Some areas have no income cap.
Is the 1% down loan only for first-time homebuyers?
It’s ideal for first-time homebuyers, but repeat buyers may also qualify if they meet credit, income, and property requirements.
What’s the minimum credit score for a 1% down mortgage?
Most borrowers need at least a 620 FICO score to qualify. Higher scores can unlock better rates and terms.
Will I need PMI with a 1% down conventional loan?
Yes — private mortgage insurance is required until you reach 20% equity. Many buyers find the monthly cost manageable, and PMI can be removed later.
How long does it take to close on a 1% down mortgage?
We regularly close in 15–20 days, depending on how quickly documents are provided and the appraisal is completed.
How do I apply for a 1% down mortgage loan?
You can start your application online or speak directly with a VP Capital Lending loan advisor who can check your eligibility and provide real numbers.