One of the biggest misconceptions about the 1% down program is that only first-time homebuyers can use it.
A lot of low down payment programs focus on first-time buyers. So, it makes sense that people assume this one works the same way.
But here is the good news: more buyers may qualify for the 1% down program than you think.
What Is the 1% Down Program?
The 1% down program helps qualified buyers purchase a home with less money out of pocket.
Instead of bringing a full 3% or 3.5% down payment from their own funds, eligible buyers may only need to contribute 1% of the purchase price.
A gift may cover the remaining down payment amount, depending on the loan program and buyer qualifications.
That can make a big difference for buyers who have good income and can afford the monthly payment, but do not have a large amount saved for a down payment.
Is the 1% Down Program Only for First-Time Buyers?
The 1% down program does not exclude buyers who have owned a home before.
Some buyers assume they cannot qualify because they are selling a home, moving up, or buying again after renting for a while.
Depending on the loan type, credit profile, income, and overall scenario, repeat buyers may still be able to use the 1% down program.
That is why buyers should check eligibility before assuming their answer is no.
Who Could Benefit From the 1% Down Program?
The 1% down program can help buyers who look strong in one area but feel short in another.
For example, a buyer may have:
- Good income
- Stable employment
- Manageable monthly debt
- Enough money for closing costs
- Limited savings for a large down payment
This type of buyer may feel ready for homeownership, but the upfront cash requirement can create the biggest hurdle.
The 1% down program may help bridge that gap.
It may also help buyers keep more money available for moving expenses, furniture, repairs, upgrades, or lowering their interest rate with a temporary or permanent buydown.
First-Time Buyer or Not, Eligibility Still Matters
Even though the 1% down program is for all buyers, they still need to qualify.
A lender like our team at Houzd Mortgage will review credit score, income, employment, debts, loan type, and overall ability to repay the mortgage.
The program may offer FHA and conventional loan options, depending on the buyer’s situation.
This flexibility matters because every buyer’s file looks different.
One person may fit better with FHA. Another may fit better with conventional. The right option depends on the full picture.
Why This Matters
This misconception matters because we’ve found that many buyers may rule themselves out too early.
They may think:
“I already owned a home, so I probably do not qualify.”
“I’m not a first-time buyer, so this is not for me.”
“I need to save a full down payment before I can buy.”
Those assumptions can delay someone’s plans for months or even years.
Sometimes, the better move is to review the numbers now. Even if you are not ready today, you can still learn what options are available and what steps to take next.
The Bottom Line
The 1% down program is not just for first-time buyers.
Qualified repeat buyers, move-up buyers, and buyers who have owned a home before may also be able to use it.
If the monthly payment fits, but the down payment feels like the roadblock, this program is worth looking into.
Before assuming you do not qualify, let’s run the numbers and review your options.
You may be closer to buying a home than you think!
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.