A lot of buyers are in an interesting spot right now.
They have good income, can afford the monthly mortgage payment and they feel ready to buy a home.
But there is one problem.
They do not have a large down payment saved.
If that sounds familiar, you are not alone. Saving for a down payment can feel like trying to fill a bathtub with a teaspoon, especially with rent, groceries, gas, kids, emergencies, and life doing its usual little tap dance on your budget.
The good news is that the 1% down program may help qualified buyers get into a home with less upfront cash.
What Is the 1% Down Program?
The 1% down program helps qualified buyers purchase a home while bringing less money out of pocket for the down payment.
Instead of needing a full 3% or 3.5% down payment, eligible buyers may only need to contribute 1% of the purchase price.
This can make homeownership feel much more realistic for buyers who have strong income but limited savings.
Good Income Does Not Always Mean Big Savings
There is a common myth that if someone earns good money, they should automatically have a large amount saved for a down payment.
That sounds nice in theory.
In real life, it does not always work that way.
Many buyers have stable jobs and strong monthly income, but they are also paying rent, car payments, student loans, childcare, insurance, and everyday expenses.
They may be able to comfortably afford a mortgage payment, but saving tens of thousands of dollars can still take a long time.
That does not mean they are irresponsible. It may simply mean the upfront cash requirement is the biggest thing holding them back.
When the Monthly Payment Works, but the Down Payment Does Not
This is where the 1% down program can be a helpful option.
Some buyers do not need a lower monthly payment as much as they need a lower amount due at closing.
They may already know they can handle the monthly mortgage payment and may even be paying close to that amount in rent.
The challenge is getting through the front door.
A lower down payment option can help qualified buyers move forward without waiting years to save a full down payment.
Keep More Cash Available After Closing
Buying a home does not stop at the down payment.
There are moving costs, furniture, small repairs, utility deposits, yard tools, paint, and all the random things you suddenly need once you own a home.
The 1% down program may help buyers keep more cash available for those next steps.
That can make the transition into homeownership feel less stressful and more manageable.
Who May Be a Good Fit?
The 1% down program may be a good fit for buyers who have:
- Stable income
- Good employment history
- Manageable monthly debts
- Enough income to afford the payment
- Limited cash saved for a down payment
Every buyer still needs to qualify. Our team at Houzd can review your credit, income, debts, employment, and potential loan type.
For the right buyer, this program can open a door that may have felt closed.
Why It Is Worth Checking
Many buyers assume they need a large down payment before they can even start the conversation.
That assumption can delay homeownership longer than necessary.
The better first step is to review the numbers.
You may find out that you need more time to prepare. Or, you may find out that you are closer than you thought.
Either way, having a clear plan is better than guessing.
The Bottom Line
If you have good income and can afford the monthly payment, but the down payment is holding you back, the 1% down program may be worth exploring.
Let’s run the numbers, review your options, and see if this program could help you buy sooner.
Written by Anthony VanDyke, Utah Mortgage Broker — NMLS #247102 — President at Houzd Mortgage in Draper, Utah.
A mortgage broker since 2006, Anthony has helped thousands of Utah families build a stronger financial future, one home at a time. He believes a mortgage isn’t just a loan — it’s a long-term financial strategy that can shape a family’s wealth and peace of mind.
👉 See what you qualify for with Anthony’s Purchase Qualifier Tool.