Virginia Fargo, No Hassle Home Loans

When I first met my client—a recent college graduate—she was sure homeownership was out of reach. She had a steady work history from working throughout college, but like many new grads, her savings were minimal. She didn’t think she could qualify.

But here’s the truth: you don’t need a huge down payment to become a homeowner.

With a 1% down conventional loan, she went from “I don’t qualify” to “I got the keys.” Watching her walk into her new condo with pride and joy—that’s what this is all about.

1. What Is a 1% Down Conventional Loan?

A 1% down home loan is a conventional mortgage option that allows eligible buyers to put just 1% down. The lender covers an additional 2%, so the total 3% down payment meets the conventional minimum.

This means:

• You only bring 1% of the purchase price

• The lender adds 2%, giving you a total of 3% equity

• No second mortgage or hidden strings

It’s a game-changer—especially for buyers without large savings but strong income and credit.

2. Why This Works for New Grads and First-Time Buyers

Many new grads feel locked out of homeownership. But with this loan structure, you can qualify if you meet basic conventional lending criteria. Here's why it works:

• Only 1% down needed – Ideal for buyers with limited savings

• No second loan – The 2% boost isn’t a repayable second mortgage

• FHA alternative – With better PMI terms and future removal options

• Builds instant equity – You're already starting with 3% equity on day one

3. Who Qualifies for a 1% Down Home Loan?

While requirements can vary slightly, most programs follow similar guidelines:

• First-time buyer status

• Primary residence purchase

• Minimum FICO score of 620

• Stable income or recent job history

• Debt-to-income ratio under 43–50%

• Completion of a homebuyer education course

Bonus: If you’ve never owned a home or haven’t in the past 3 years, you likely qualify under “first-time homebuyer” terms.

4. Real Buyer Win: A Grad’s Story

Let’s revisit that recent success story.

The Challenge

• Recent college graduate

• Limited savings after years of working through school

• Unsure if she could even qualify

The Breakthrough

• Explored her eligibility with me

• Matched with a lender offering the 1% down program

• Verified income, credit, and intent to buy a primary residence

The Result

• She closed on a brand-new condo with just 1% down

• No second mortgage

• Immediate equity

• Confidence, freedom, and keys in hand

This is exactly why I do what I do—to open doors for buyers who didn’t think it was possible.

5. How to Get Started If You're a New Buyer

Here’s your simple roadmap:

1. Check your credit – A score of 620+ opens up the most opportunities

2. Talk to a mortgage professional (I’m here for you)

3. Document your income and job history

4. Identify the home you want to live in full-time

5. Plan for other costs – Down payment isn’t everything; closing costs, taxes, and insurance also matter

6. Complete a homebuyer education course – Often required, and always helpful

6. Who This Program Helps Most

This loan isn’t just for grads. It’s a fit if you:

• Have steady income but limited savings

• Want a conventional loan without going the FHA route

• Need low down payment

• Are buying your first home or returning after a few years

You can even pair this loan with closing cost assistance programs in many states.

7. From “I Don’t Qualify” to “I Got the Keys”

This isn’t just a story—it’s a blueprint. If you’re sitting on the sidelines thinking you need 10%, 15%, or 20% down, let me tell you: you don’t.

With just 1% down, the right program, and some expert guidance, you can:

• Stop renting

• Build equity

• Lock in today’s home prices

• Start building wealth through real estate

Let's Talk—No Pressure, Just Possibility

If you or someone you care about is putting off homeownership because of the down payment, we should connect.

I'm Virginia Fargo with No Hassle Home Loans, and I specialize in helping buyers just like you turn “I’m not ready” into “I’m a homeowner.”

Let’s find the option that fits your life and budget. I’m here to simplify, support, and get you into your first home—with less hassle and less cash.

Frequently Asked Questions

1. Can I really buy a home with just 1% down?
Yes. With eligible credit, income, and primary residence plans, you can use a 1% down conventional loan with lender-funded assistance for the rest of the required down payment.

2. What about closing costs?
You’ll still need funds for closing costs (usually 3–5% of the purchase price), but we can explore grants or seller credits to help reduce or cover these.

3. Is this better than an FHA loan?
It depends. FHA loans require 3.5% down and have permanent mortgage insurance. 1% down conventional loans offer cancellable PMI and better long-term savings for many buyers.