Homeownership Made Easier with Reduced Down Payments and Lender Contributions

In Fort Washington, Pennsylvania, a prominent player in the mortgage lending industry, announced the launch of its revolutionary product, RezSource. This conventional loan product is specifically designed to transform the home-buying experience for low-income borrowers and first-time homebuyers (FTHBs). RezSource stands out as a groundbreaking program that significantly lowers the barriers to homeownership, offering exceptionally low down payments coupled with substantial lender contributions.

Key Features of RezSource:

1. Unprecedented Low Down Payments: RezSource is a game-changer in the mortgage industry, enabling low-income borrowers and first-time homebuyers to enter the housing market with a down payment as low as 1%. This feature is particularly beneficial for those who face financial constraints and find traditional down payment requirements prohibitive.
2. Generous Lender Contribution: Newrez goes a step further by contributing the lesser of 2% of the appraised value or purchase price, or $5,000. This contribution significantly reduces the financial burden on the borrower, making the dream of homeownership more attainable.
3. Minimized Out-of-Pocket Costs: The program is meticulously crafted to reduce out-of-pocket expenses for borrowers, ensuring a more affordable path to owning a home.
4. Flexible Funding Sources: Recognizing the diverse financial backgrounds of potential homeowners, RezSource offers flexibility in meeting the 1% down payment requirement. Borrowers can use various sources for this contribution, including gifts, family funds, support from eligible nonprofits, and assistance from government agencies.

Baron Silverstein, President of Newrez, expressed his enthusiasm for the new product: “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. 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 is the latest addition to 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 products are focused on putting homeownership within reach for underserved communities across the nation, supporting Newrez’s ultimate goal of making homeownership accessible to everyone, regardless of income or background.

In summary, RezSource by Newrez represents a significant advancement in the mortgage lending industry, offering a unique combination of low down payments and lender contributions. This innovative approach is set to redefine the home buying process, particularly for low-income individuals and first-time buyers, making the dream of homeownership more attainable and inclusive. As Newrez continues to expand its portfolio of affordable lending products, it reinforces its commitment to addressing the needs of diverse communities and fostering a more equitable housing market.