1% Down Quicken Loans Could work for 1st time Investor

[Desmond Alexander]

I ran across this today. I am not sure about all of the details but this could be a great way in for a first time investor. what do you ladies and gents think? Any vets have any advice about this? ***Quicken Loans is offering qualified Americans the opportunity to purchase homes for 1%* down. That’s right, for as little as $3,000 down qualified individuals are buying homes worth $300,000. Not only that, Quicken Loans is giving these people a 2% grant, so if they put down $3,000, Quicken Loans will put down an extra $6,000, so they’ll start with $9,000 down. And yes, this really could work. ***

[Chris Mason]

Freddie Mac is discontinuing this loophole. 

FYI: All they were doing was bumping the terms/conditions of the loan in favor of the lender, such that Freddie Mac would pay 2.5% or 3% more for the loan, thus yielding 2% to kick back to the buyer, while still making it a higher profit loan.

The settlement date thing is important, as there will presumably be thousands of people preapproved and/or in contract on that date, including people a week or a few days away from closing. Plan accordingly, including with your financing contingency and the disposition of your earnest money deposits.

Usually, for context, it says "origination dates" or "application dates" (eg, ratified contract & has been registered in the system) on or after a specified date. Meaning that, normally, as long as your lender has a fully ratified contract in-hand before the deadline, you're good to go. Not so, with this one.