Newrez launched a new conventional loan product geared towards low-income and first-time homebuyers, the company announced in a press release.
The product, RezSource, is designed to lower out-of-pocket costs for borrowers.
It allows qualified buyers to secure a 1% down payment, which can be sourced from various places including gifts, funds from family, support for non-profits, and assistance from government agencies, among other options.
At the same time, Newrez will contribute up to $5,000, based on the lesser of 2% of the appraised value or purchase price, easing the financial burden of homebuying.
“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.”
Company leaders say RezSource is an addition to Newrez’s affordable lending suite, which includes programs like Freddie Mac’s BorrowSmart, Freddie Mac’s Home Possible, and 3-Step Reno.
Pennsylvania-based Newrez is a mortgage origination and servicing company. Newrez Ventures, formerly Shelter Mortgage Company, joined the Newrez Family of Companies in 2014, fostering relationships between builders, brokers, and relocation companies across the nation.
It has recently focused on expansion through a partnership with Keller Williams– which resulted in two new lending companies, Onward Home Mortgage and Carnegie Mortgage Partners– and one with Meybohm Real Estate, Meybohm Mortgage.
Read More Articles:
A Gift Doesn’t Cut It Anymore: Holiday Marketing Tactics For A Successful Season
Hitting The Interest Rate Jackpot: Balancing The Benefits Of An Assumable Mortgage
Are Rent-To-Own Home Agreements Worth It?
Sign up for our free newsletter.