McGowan Mortgages explains their 1 & 1 loan program, which uses grants and rate buy-downs to help buyers put down less money and get lower interest rates on home loans.
If you're a home buyer in today's housing market, you're going to want to listen up. McGowan Mortgages is rolling out our one and one loan program. When talking with thousands of home buyers, countless amazing real estate agents that we work with over and over again. The reoccurring theme is buyers need help with down payments and the interest rates. We're here to solve both of those issues. First and foremost, we're doing a conventional loan where you only put 1% down. That's the first one. Unlike the normal 3 or 5% down payment, we have a grant that comes in and covers the difference. There you bring 1%, and that grant is forgivable on day one, so you don't pay it back later. If you refinance, if you sell the house, the money's yours. That's our gift to you for being here to help you. And the second big piece of that is this is not a down payment assistance program, because if it was, it would jump the interest rate up. This is still normal, good conditional interest rates. We're getting as close as we can, 1% as close as we can without it being a down payment assistance program. But it's a true grant. That's forgiven on day one. And the second one would be, we are buying down your interest rate by 1% for the first year. This is not an adjustable rate. Let's say that your rate normally would have been 6.5%, for example, for the first.
