FirstREX announced it will provide downpayment funding in combination with the portfolio loans of HomeStreet Bank, one of the largest community banks in the Pacific Northwest and a wholly owned subsidiary of HomeStreet Inc. Under the REX HomeBuyer program, FirstREX will fund up to half of the borrower’s down payment required on a HomeStreet purchase loan. The down payment funding from FirstREX is an equity investment—not a grant, subsidy or loan—so there is no interest and the homeowner makes no monthly payments to FirstREX. The company instead earns a return on its investment when the home is eventually sold, up to 30 years in the future. If the home has increased in value, the company earns a profit. If the home has decreased in value, FirstREX typically suffers a loss.
“Our focus is on helping people buy homes,” says Rich Bennion, executive vice president and residential lending director for HomeStreet Bank. “Down payment funding from FirstREX expands the options of qualified homebuyers to buy a home that will meet their needs. REX HomeBuyer is a welcome addition to the home financing solutions we make available to the community.”
“Many home buyers can easily afford the monthly housing payments on the home they want to buy, but don’t have enough cash saved for the required down payment,” says James Riccitelli, co-CEO of FirstREX. “Others have the cash but are uncomfortable making a large down payment. REX HomeBuyer solves both of these problems. Buyers can buy the home they really want today, with less debt and less risk, and retain some of their cash after closing for other purposes.”