There is no rate penalty. If anything, HomeReady and Home Possible pricing runs the other way. Both programs are for borrowers at or below 80% of the area median income, and eligibility brings real pricing help: - HomeReady waives the loan-level price adjustments (LLPAs) a standard conventional borrower would pay. - Home Possible waives those adjustments on loans above 80% loan-to-value with credit scores of 680 or higher. - Both allow reduced mortgage insurance coverage compared with a standard conventional loan. That combination generally produces a lower cost than standard conventional financing at the same profile. If you are eligible, use the program. Rocket Plus and UWM's 1%-down offering are built on top of HomeReady; the lender adds a grant so your own contribution stays tiny. Worth knowing: standard HomeReady and Home Possible run on income, and are never limited to the minimum down payment. Put down 10% or 15% if you prefer and you keep the favorable pricing treatment, unlike the specific 1%-down products that cap your contribution. Income limits and program rules change, so confirm you are under the current area-median-income threshold for your county before counting on it. These programs are a pricing advantage, and the real question is eligibility. We can check whether you fall under the limit and compare the program against your other options.