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Guild Mortgage has reached an agreement with FirstREX where FirstREX will provide downpayment funding in combination with Guild Mortgage loans to help more people buy homes. The program launches Aug. 1 in Washington, with future launches being planned for additional states where Guild operates. Under its REX HomeBuyer program, FirstREX can contribute up to half of a 20 percent downpayment for a home purchase. The REX HomeBuyer investment combined with a Guild Mortgage loan will empower prospective homebuyers to buy the home they really want with unprecedented opportunity, flexibility and control.
FirstREX’s contribution to the buyer’s downpayment is an investment, not a loan, so there are no interest or monthly payments on the money. Instead, FirstREX hopes to earn a return on its investment from a portion of the appreciation when the homeowner eventually sells. A homeowner can also buy out the agreement after three years.
“Buyers can consider a wider range of home prices, lower their monthly payment and reserve cash for retirement, home improvements or their children’s education,” said Mary Ann McGarry, president and CEO of Guild Mortgage. “Guild has a long history of helping first-time homebuyers and this program will be great for them. We see this program with FirstREX also helping solve financing challenges for move-up buyers across all price ranges.”
“The REX HomeBuyer program will open up the market to more potential borrowers,” said James Riccitelli, co-CEO of FirstREX. “Imagine a prospective homebuyer who has 10 percent to put down. Now they have 20 percent. They can buy more home without taking on additional debt. Likewise for someone who has the full 20 percent to put down. With our investment, they can put half of that back in their pocket. Buyers can buy the home they really want today, with less debt and less risk, while retaining some of their cash after closing for other purposes.”