FORT WASHINGTON, PA — Newrez has launched a groundbreaking loan product, RezSource, aimed at increasing homeownership among low-income borrowers and first-time homebuyers (FTHBs). The new product offers a lower entry barrier into the housing market by requiring only a 1% down payment and includes a generous lender contribution.
RezSource’s key features address some of the most significant challenges facing low-income borrowers and FTHBs. The product’s minimal 1% down payment requirement is poised to be a game-changer for many potential homeowners who have been hindered by financial constraints.
In addition to the low down payment, Newrez contributes the lesser of 2% of the appraised value or purchase price or $5,000, offering additional support to borrowers and further reducing their financial commitment.
RezSource has been meticulously designed to minimize out-of-pocket costs for borrowers, making the journey to homeownership smoother and more affordable. The product also accommodates diverse financial situations by allowing borrowers to meet the 1% down payment contribution through various sources. These include gifts, funds from family, support from eligible nonprofits, and assistance from government agencies.
“We are thrilled to introduce RezSource, a product that reflects our commitment to making homeownership a reality for individuals who may have thought it was out of reach,” said Baron Silverstein, President at Newrez. “With RezSource, we aim to empower low-income borrowers and first-time homebuyers by providing an unprecedented combination of very low-down payments and substantial lender contributions.”
RezSource joins Newrez’s suite of affordable lending products, which includes programs like Freddie Mac’s BorrowSmart®, Freddie Mac’s Home Possible®, and 3-Step Reno. These offerings aim to increase homeownership in underserved communities across the nation, reinforcing Newrez’s commitment to making homeownership accessible to all, regardless of income or background.
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