New mortgage option offers low-down payment and lender contributions
Newrez has expanded its affordable mortgage product suite with RezSource, a new conventional loan option for low-income borrowers and first-time homebuyers (FTHBs).
The national lender said the program is structured to minimize out-of-pocket expenses, making the homebuying process more accessible and less daunting for potential homeowners.
RezSource offers 1% down payment requirements, with flexible funding sources for the down payment, such as gifts, family funds, support from eligible nonprofits, and government agency assistance.
In addition to the low down payment, Newrez will contribute the lesser of 2% of the appraised value or purchase price, or $5,000, to further alleviate the financial burden on the borrower.
“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,” Newrez president Baron Silverstein said in a news release. “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 Freddie Mac’s BorrowSmart, Freddie Mac’s Home Possible, and 3-Step Reno. These programs collectively focus on enhancing homeownership opportunities in underserved communities.
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