has introduced 3-2-1 Home, a mortgage program that offers a lower downpayment option for first-time homebuyers.
According to the San Diego-headquartered company, the new program allows borrowers to purchase a home with as little as three percent down. In this program, Guild provides a $2,000 Home Depot Gift Card and a $1,500 grant that can be applied toward closing costs or increasing the down payment after the minimum three percent investment is met. Thus, the program can be funded by a gift, such as a wedding or graduation present. Qualified borrowers must have a minimum credit score of 620 and purchase a home within 100 percent of the area median income for their family size, except in underserved areas. The program is in the 40 states where Guild operates.
“We are constantly looking for innovative ways to serve first-time homebuyers, especially with so many struggling to afford a downpayment or find a home that suits their needs,” said Mary Ann McGarry, Guild’s President and CEO. “With the 3-2-1 Home program, buyers can consider a home that may need minor repairs or updates and have peace of mind knowing they have extra resources to make improvements without tapping into their cash reserves.”