FirstREX has introduced its REX HomeBuyer program, whereby the company will fund up to half of a borrower's down payment on a purchase loan originated by HomeStreet Bank, a community bank based in the Pacific Northwest.
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 says. Rather, FirstREX earns a return on its investment when the home is eventually sold. If the home has increased in value, the company earns a profit. If the home has decreased in value, FirstREX typically suffers a loss.
‘Down payment funding from FirstREX expands the options of qualified homebuyers to buy a home that will meet their needs,’ says Rich Bennion, executive vice president and residential lending director for HomeStreet Bank. ‘REX HomeBuyer is a welcome addition to the home financing solutions we make available to the community.’
The program is expected to become available to HomeStreet Bank customers during the third quarter.