1% down mortgage anyone?

Rocket Mortgages has introduced a new program…what could go wrong.

https://www.rocketmortgage.com/learn/one-plus

I've never borrowed money before but if they'll approve any mortgage that you ask for with a 1% down payment I'll go buy 10 houses tomorrow. The people that bailed on their underwater homes in the last housing bust were fools and the majority of my net worth came from buying those foreclosed and or distressed properties.

Hard pass! Mortgage free is much better!

Gotta read the terms/conditions.

Wow. You qualify with a 620+ credit score and an income cap of 80% of median in the zip code where the property is located.

A rule of thumb is a mortgage payment of no more than 25-30% of your monthly take-home. Texas median household income is $93,386 in 2022. That puts take home right at $70,000, give or take after taxes; $5,850/month....30% of that is $1,755. Figure $150/mo for homeonwers insurance leaves $1,600 to cover debt and taxes. That MIGHT get someone on this program into a $200,000 home because interest rates are 7%. The median home price in Texas is $390,600. Median income CANNOT afford median homes. There are ALOT of people living outside their means and/or we are due for a correction.

Issue is I’ve heard of people being approved on mortgages for 40-45% of monthly income, which is insane. Beans and rice on a good day.

Buddy of mine’s son who makes $75k got approved for a $500k mortgage. Cmon back over to us, 2009 housing crash

Got a granddaughter that wants a house. She’s in the mortgage company line of work, so I don’t think she’ll do anything stupid. As for the rest of you, buy what you want. I’m low profiling it out here in the country. Not buying anything big for the foreseeable future.

We finance a lot of homes through USDA Rural Development loans. 0% down available. Also VA loans with zero down.

500k on 75k income is insane. I follow Huntfly67’s logic. If I had a 75k income I wouldn’t be buying anything over 150k. We haven’t had a mortgage in over a decade but every time we have bought a home the price was never more than twice our annual income and personally I felt like even that was a stretch and 1.5 times was better.

On the road to disaster

They will nail you in Rate of Interest!!!!!!!

At what interest rate?

Do you mean the properties that I bought in the housing crash in 08-09? I paid cash for those indirectly. Myself and a few other guys bought up the paper on bad loans at about 10 cents on the dollar. Later on we divided up the properties amongst each other. To get my foot in the door of owning 10 more rental properties I would pay 7% or 8% today because even if things got really bad I can afford to just pay all the houses off or just pay the mortgage out of pocket.

Out of curiosity I applied using a stated income of 60k and said I wanted a 450k house for a primary residence. If they say yes I will be shocked but if they do it will mark the beginning of a cycle that's not going to end well for the country.

lending to people with no cash in the game is a sucker bet.

This will be history repeating itself.

AND.........you can now get a 40 or 50 year mortgage.


that's very special

Agreed, no skin in the game makes it way too easy to walk.

Probably very high interest rates and additional mortgage insurance cost.

Yup