NewRez Introduces 1% Down Mortgages

Newrez has unveiled a new product called RezSource, a conventional loan product that improves accessibility for low-income borrowers and first-time homebuyers. RezSource enables low-income borrowers and first-time homebuyers to enter the housing market with only a 1% down payment.

In addition to offering a minimal down payment requirement, Newrez helps the borrower by contributing the lesser of 2% of the appraised value or purchase price or $5,000. The offer is only available for 30-year fixed-rate loans. Income limits and property type restrictions apply. The minimum loan amount is $25,000 in all states but Michigan ($10,000).

Newrez created RezSource with added flexibility in meeting the 1% down payment contribution. Borrowers can use various sources including gifts, funds from family, support from eligible nonprofits, and assistance from government agencies, among others.

Baron Silverstein, president at Newrez, said, "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."