Key facts
- Lower has launched a new mortgage program called ONE by Lower.
- The program allows eligible homebuyers to contribute as little as 1% for a down payment.
- A lender grant of 2% of the home's purchase price, capped at $4,500, is provided.
- The grant does not need to be repaid and has no resale restrictions.
- Borrowers must have household income at or below 80% of the area median income and a credit score of at least 620.
- The maximum loan amount for the program is $375,000.
Lower has introduced a new mortgage program, ONE by Lower, designed to assist homebuyers struggling with upfront costs. The program allows eligible individuals to contribute as little as 1% of the home's purchase price, with Lower providing a 2% lender grant, capped at $4,500. This initiative aims to address challenges posed by elevated home prices, mortgage rates, and inflation.
The grant does not require repayment and carries no resale restrictions. Lower CEO Dan Snyder stated the program is an investment to help more people achieve homeownership and build wealth. Craig Montgomery, president of Lower's retail division, explained that the program targets buyers with sufficient income and credit who face difficulties saving for a down payment due to economic pressures.
To qualify, borrowers must have a household income at or below 80% of the area median income and a credit score of at least 620. The program is available for first-time and repeat buyers for single-unit primary residences, with a maximum loan amount of $375,000. The full 2% grant is available on homes priced up to $225,000; for more expensive homes, the grant remains capped at $4,500, potentially requiring borrowers to contribute more than 1% to meet down payment requirements.