One of the largest home loan providers in the U.S., Guild Mortgage originated over 75,000 mortgages in 2024. The San Diego-based fintech company's flexible credit requirements and generous down payment assistance programs are some of the reasons it landed on CNBC Select's lists of the best mortgage companies and best lenders for a small down payment.
One great option Guild has for lower-income homebuyers is the 1% Down mortgage. Borrowers who meet income requirements and have a 1% down payment are eligible for an additional 2% from Guild in the form of a non-repayable grant, up to $5,000.
Unlike similar programs from competitors, the 1% Down loan is available to both first-time and repeat buyers with no location restrictions.
- Offers a wide range of uncommon loans, so you're more likely to find one that fits your needs than with other lenders.
- Boasts several down payment assistance programs, making it a great lender for first-time homebuyers who may not have much saved up for a down payment.
- Some loans closes can receive a 17 day closing guarantee, which can ensure you get the keys to your home in quicker than half the average timeline.
- E-closings available so you may be able to finalize your mortgage paperwork from your couch.
- Rates are not available online
- Does not issue mortgages in New York
How does Guild's 1% Down work?
Approved borrowers with a 1% down payment will get another 2% from Guild in the form of a non-repayable grant. That automatically lets them meet the 3% down payment requirement for conventional loans set by Fannie Mae and Freddie Mac.
Applicants may also be eligible for a lender-paid temporary buydown, which covers a portion of their interest for a set period, thereby keeping monthly payments lower initially.
Although Guild is not licensed to lend in New York, first-time and repeat homebuyers in every other state can qualify.
Requirements
Income: Up to 80% of the area median income
Credit score: 620 (other credit sources considered)
Other requirements: Must be for a single-family home and borrowers must complete a homebuyer education course
Is Guild's 1% Down right for you?
Guild's 1% Down loan is a great choice for households earning up to 80% of the area median income. Unlike a number of other down payment assistance programs, it's not limited to first-time buyers or low-to-moderate-income (LMI) census tracts.
Since Guild considers alternate credit sources (including on-time utility payments), it's also a strong contender if your credit history is thin or you have a nontraditional income source.
You should also consider the loan if you're in a hurry: Guild's Homebuyer Express guarantee means you'll close within 17 days or be eligible for a $500 closing cost rebate (not available in Oregon).
Guild has a mixed record with customer satisfaction, though: While it received an A+ from the Better Business Bureau and scored above average for customer satisfaction on J.D. Power's 2024 mortgage servicing survey, it scored below average for origination.
There are also inherent drawbacks in making a small down payment:
- You'll start with less home equity
- You'll have to pay private mortgage insurance for longer.
- You're more at risk of an "upside-down mortgage," where the value of your property is less than what you owe.
Pros and cons of Guild 1% down
- Only requires 1% down
- Comes with 2% grant, up to $5,000
- $500 closing guarantee
- Guild is rated above average for mortgage servicing
- Not available in New York
- Limited to borrowers earning 80% AMI
- Guild scores below average for mortgage origination
Other low-down-payment mortgages
If you don't qualify for the 1% Down program, Guild has other loans with down payment assistance: The Zero Down loan combines a 3.5% FHA loan with a forgivable second mortgage, effectively reducing your down payment to zero. Plus, you only need a 600 credit score to get approved.
Guild's Arrive Home loan is another zero-down option available to borrowers who earn as much as 160% of the median income in their area.
Looking at other lenders, only requires 1% down, while borrowers can be approved for Citibank's HomeRun mortgage and Chase Bank's DreaMaker loan with as little as 3% down.
Offers in this section are from affiliate partners and selected based on a combination of engagement, product relevance, compensation, and consistent availability.
10, 15 or 30 years for fixed-term conventional loans, 30-year VA and FHA loans. Custom mortgages with fixed-rate terms from 8 to 29 years.
620 for conventional, 500 for FHA
0% for VA, 1% for RocketONE+, 3% for conventional, 3.5% for FHA, 10% to 15% for jumbo
10 – 30 years
620
3% for DreaMaker℠ or Standard Agency loan
Government-backed mortgages
FHA loans: Backed by the Federal Housing Authority, these mortgages only require 3.5% down if you have a 580 credit score or better.
USDA loan: The U.S. Department of Agriculture guarantees zero-down home loans to borrowers buying in select rural and suburban areas and earning up to 115% of the AMI.
VA loan: These zero-down-payment mortgages, backed by the Department of Veteran Affairs are available to active duty service members, reservists and veterans.
HomeReady: You only need a down payment of 3% down with this Fannie Mae-backed mortgage. Borrowers must earn no more than 80% of the area median income and have a credit score of at least 620.
Home Possible: You only need a down payment of 3% down with this Freddie Mac-backed mortgage. Borrowers must earn no more than 80% of the area median income and have a credit score of at least 620.
| Minimum down payment | Eligibility | Minimum credit score | |
|---|---|---|---|
| VA loan | 0% | Active-duty U.S.service members veterans, Reserves National Guard and eligible surviving spouses | 620 |
| FHA loan | 3.5% | Debt-to-income ratio of 43% percent or less (up to 50 percent in some cases) | 580 with 3.5% down or 500 with 10% down |
| USDA loan | 0% | No more than 115% area median income, property in qualifying area | Typically 640 |
| HomeReady mortgage | 3% | No more than 80% of the area median income | 620 |
| Home Possible® mortgage | 3% | No more than 80% of the area median income | 660 |
| HomeOne® mortgage | 3% | First-time homebuyers (no income requirement) | 660 |
Guild Mortgage FAQs
Is Guild Mortgage legit?
Founded in 1960, San Diego-based Guild Mortgage is a legitimate lender with 740 branches in 46 states. It's licensed nationwide except in New York and, in 2024, approved 75,356 mortgages totalling $23.2 billion.
What credit score do I need to get a home loan from Guild Mortgage?
Guild Mortgage requires a.FICO score of 620 for a conventional mortgage, 1% Down and Arrive Home loan and a 600 to qualify for its Zero Down loan. Guild accepts scores of 540 for FHA, VA and USDA mortgages and 680 for jumbo loans, lower than many other lenders.
Does Guild sell its mortgages?
Ranked No. 4 on J.D. Power's 2024 survey of mortgage servicers, Guild Mortgage claims it services the majority of the loans it originates. According to the Guild website, "We're your loan partner throughout the life of the loan."
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At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every mortgage review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of mortgage products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.
Our methodology
CNBC Select reviews mortgage products using a variety of criteria, including average rates, eligibility requirements, available terms, fees, nationwide availability, online experience and customer satisfaction.
We also incorporate findings from independent sources, including lender scores from J.D. Power's mortgage origination and servicer surveys and ratings from the Better Business Bureau.
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