Rocket Mortgage is launching a product for low-to-moderate income borrowers to help get them on the ladder of homeownership.
With ONE+, homebuyers pay a down payment of 1% of the purchase price. Households with income equal to or less than 80% of their area median income are eligible.
Rocket will then kick in the remaining 2% required for a loan. ONE+ covers the monthly mortgage insurance fee required if a buyer places less than 20% down.
The program is available for single-family home purchases, including manufactured homes, and it is expected that more than 90 million Americans can save thousands of dollars.
Bob Walters, CEO of Rocket Mortgage, said in a statement that no other lender has an option that makes affordable homeownership possible for as many Americans as ONE+.
A well-documented hurdle to homeownership is a lack of an adequate down payment, especially with the increase in home prices nationally.
“We talk with people from all walks of life every single day – many of whom are ready to own a home, and could easily make the monthly mortgage payments, but are having trouble saving for a down payment. ONE+ is a response to that feedback and the latest example of Rocket’s commitment to creating programs that help make homeownership more attainable,” Walters said.
Rocket Pro TPO Executive Vice President Mike Fawaz said on Monday morning that broker partners and loan officers will benefit from the program.
Fawaz said this gives broker partners the opportunity to reengage with clients that may not have qualified for a mortgage based on their ability to come up with a down payment in the past, as well as people who did not qualify based on their debt-to-income ratio.
Fawaz said ONE+ is available to the entire broker community.
“Any broker partner with Rocket Pro TPO will have access to this program, which is incredible. We’re not going to pick and choose who can have access to it. We’re not going to pick and choose who qualifies for it. If you’re a broker partner of Rocket Pro TPO, you have access to this program. If you’re a loan officer working with Rocket Pro TPO, you have access to this incredible program. We’re excited to be able to deliver it to the entire broker community,” Fawaz said during an Ignite Live webinar.
Finding ways to reach customers in a tough market has been a goal of leaders at Rocket.
Bill Banfield, Executive Vice President of Capital Markets at Rocket Mortgage, said in a recent interview with The Mortgage Note that affordability is on everyone’s mind.
“Home prices, interest rates, I mean it is a top conversation we have with clients as we figure out what kind of home they want to buy or if they decide to stay where they are. This is what they are talking about. And so, what we have been focused on is providing options that a buyer can use to make the transaction less expensive,” Banfield said.
In April, company leaders announced a national program where buyers can receive help through BUY+, a collaboration with Rocket Homes. Buyers can receive a credit of 1.5% of their loan amount – up to $10,000 off their closing costs – by working with a Rocket Homes Partner Agent.
An Inflation Buster program was made available to consumers last fall, giving homebuyers a reprieve by reducing their monthly mortgage payment by one percentage point for the first year of their loan.
Despite market challenges, Rocket Companies had a better first quarter than many analysts projected.
Read More Articles:
Unique Opportunities: A Look At The Spring Season In Nontraditional Markets
Closing The Gap: Fannie Mae’s Credit Building Program Finds Success
Rocket VP Of Public Policy: Goal Is To Reduce Barriers To Homeownership