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Mortgage lender and servicer NewRez<\/strong> on Monday launched a special purpose credit program<\/a> through Freddie Mac<\/strong> that will provide $3,000 or more in closing cost assistance to qualifying first-time homebuyers. <\/p>\n Freddie Mac’s BorrowSmart Access program will be available to NewRez borrowers through Caliber Home Loans<\/strong>‘ national network of branches. <\/p>\n The program offers $3,000 or more in closing cost assistance if borrowers in select metropolitan areas meet a minimum 3% downpayment, complete a one-on-one homeownership counseling, and earn less than or equal to 140% of the area median income (AMI). <\/p>\n “Our mission is to expand access to mortgage credit and advance economic opportunities for minorities and low- to moderate- income communities,” Baron Silverstein, President of Newrez said in a statement. “With BorrowSmart Access, we’re delivering on that mission by providing ways to reduce cost in the homebuying process.\u201d<\/p>\n Borrowers can utilize additional sources of funds from gifts, family, and other approved down payment assistance programs to gain even more purchasing power, NewRez said in a statement. <\/p>\n BorrowSmart Access is available in 10 metropolitan areas across the United States, including:<\/p>\n Program borrowers also need to meet the lender’s eligibility requirements, which typically include a minimum credit score of 620 and a maximum debt-to-income ratio of 50%. <\/p>\n For those who make between 50.01% and 80% of AMI, there is up to $1,250 worth of assistance available. The credit goes up to $2,500 if a borrower makes 50% or less of AMI. The special purpose credit program is an extension of the government sponsored enterprise’s equitable housing finance plan<\/a>. <\/p>\n As part of its commitment to help low-income borrowers, Freddie Mac\u00a0<\/a>in April pledged 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 assist smaller financial institutions with access to Freddie Mac\u2019s multifamily financing.<\/p>\n Freddie Mac\u2019s DPA One, a down payment assistance digital platform, will also be made available broadly this year and complements Freddie Mac\u2019s SPCP efforts.<\/p>\n Rocket Mortgage<\/strong> began offering <\/a>the recently revamped BorrowSmart Access program in March. CrossCountry<\/strong> Mortgage<\/strong>, Guild Mortgage<\/strong> and several other lenders also began offering the program this year. <\/p>\n\n