Low Down Payment Options | 95% LTV and Less

Downpayment Advantage™

The Downpayment Advantage program is designed for borrowers who can make a down payment of at least 5% toward the purchase of a home.

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Transaction Types

• Purchase transactions.
• Purchase Advantage Plus™ eligible.
• Portable eligible.

Amortization

• Maximum 25 years.

Loan-to-Value Criteria

• 95% for Purchase: 1-2 units
  • Purchase Price ≤ $500,000: Minimum 5% down payment required.
  • Purchase Price > $500,000 and < $1,000,000: Minimum 5% down payment required on the first $500,000 of the purchase price, plus an additional 10% down payment required on the portion of the purchase price above $500,000.
• 90% for Purchase: 3-4 units

NOTE: Maximum LTV is subject to adjustments based on local housing market conditions.

Interest Rate Types

• Fixed, standard variable, capped variable and adjustable rate mortgages permitted.
• Borrower(s) must qualify at an interest rate that is the greater of the contract mortgage rate plus 2%, or 5.25%.

Property Types

• Maximum property value must be less than $1,000,000.
• Maximum 4 units, with 1 unit owner-occupied.
• Resale or new construction (single advance).

Borrower Qualifications

• Down payment must be from borrower’s own resources or gifted from a close family member.
• Standard underwriting guidelines apply.
• Maximum debt service ratios: GDS 39% / TDS 44%

Documentation Requirements

• Standard documentation.

Applicable Premiums

NOTE: Mortgage Insurance premiums are non-refundable.

Last Updated: 02/2024