Warning: Undefined variable $custom_content in /home4/comcompare/public_html/mortgagenews/wp-content/plugins/code-snippets/php/snippet-ops.php(582) : eval()'d code on line 10
NewRez Unveils Game-Changing Partnership: Empowering First-Time Homebuyers with Enhanced Downpayment Assistance Program
In an exciting development within the mortgage industry, leading lender and servicer NewRez has introduced a groundbreaking special-purpose credit program in collaboration with Freddie Mac.
This innovative initiative aims to provide substantial closing cost assistance, starting at $3,000, to qualifying first-time homebuyers.
Freddie Mac’s revamped BorrowSmart Access program, made available to NewRez borrowers through Caliber Home Loans’ expansive national network of branches, is set to make a significant impact in the housing market.
By offering a minimum of $3,000 in closing cost assistance, this program opens doors to aspiring homeowners in select metropolitan areas who meet specific criteria.
To be eligible for the BorrowSmart Access program, homebuyers in the designated metropolitan areas must fulfill the following requirements: make a minimum 3% downpayment, complete a personalized homeownership counseling session, and earn an income equal to or less than 140% of the area median income (AMI).
Baron Silverstein, President of Newrez, emphasized the company’s commitment to expanding access to mortgage credit and fostering economic opportunities for underserved communities.
Silverstein stated, “With BorrowSmart Access, we’re delivering on that mission by providing ways to reduce costs in the home buying process.”
NewRez recognizes the importance of increasing purchasing power for homebuyers.
The program allows borrowers to utilize additional sources of funds, including gifts, family support and approved down payment assistance programs, further enhancing their ability to secure their dream homes.
BorrowSmart Access is initially available in ten metropolitan areas across the United States, including Atlanta-Sandy Springs-Alpharetta, Chicago-Naperville-Elgin, Detroit-Warren-Dearborn, El Paso, Houston-The Woodlands-Sugar Land, McAllen-Edinburg-Mission, Memphis, Miami-Fort Lauderdale-Pompano Beach, Philadelphia-Camden-Wilmington, and St. Louis.
Applicants must also meet NewRez’s eligibility requirements, which typically entail a minimum credit score of 620 and a maximum debt-to-income ratio of 50%.
By aligning with these criteria, potential homeowners can unlock the benefits of the special-purpose credit program.
This program is an extension of Freddie Mac’s overarching commitment to equitable housing finance.
The government-sponsored enterprise has made a significant pledge to expand the use of special purpose credit programs (SPCPs), increase the availability of accessory dwelling units (ADUs) and manufactured homes, and launch a correspondent lending program to support smaller financial institutions in accessing Freddie Mac’s multifamily financing.
In line with these efforts, Freddie Mac’s DPA One, a digital platform for down payment assistance, will be made widely accessible later this year.
This platform will work seamlessly with Freddie Mac’s SPCP initiatives, offering comprehensive support to low-income borrowers.
Since its introduction in March, the BorrowSmart Access program has been gaining momentum, with Rocket Mortgage and other prominent lenders joining the ranks of those offering this revamped program.
Now, with NewRez and Caliber Home Loans as key players, the program’s impact is set to grow even further, empowering more first-time homebuyers to turn their homeownership dreams into reality.
The collaboration between NewRez and Freddie Mac marks an exciting chapter in the mortgage industry.
Through their unwavering dedication to affordability and inclusivity, they are transforming the landscape of homeownership, creating opportunities for individuals and families to thrive.
Reference Source: Housing Wire
