Mortgage lender Click n’ Close has rolled out a new financing product that pairs an adjustable-rate mortgage with down payment assistance in an effort to make new homes more accessible to buyers.
The program — called the SmartBuy 5/1 ARM Down Payment Assistance product — offers a first mortgage alongside a repayable second mortgage.
The second loan can be applied toward costs such as down payments[1], closing costs, prepaid expenses or rate buydowns.
Homebuilders have been seeking more flexible financing tools as affordability pressures such as mortgage rates[2] weigh on buyers and new home sales remain flat.
“The SmartBuy 5/1 ARM DPA is built with builders in mind,” said Jeff Bode, founder and CEO of Click n’ Close. “It provides a practical way to address affordability concerns, giving builders another tool to help buyers move forward with confidence in today’s market.”
Click n’ Close has previously offered other down payment assistance[3] programs and is also a provider of Section 184 home loans for Native Americans.
The company operates in multiple states and serves consumers and mortgage originators through wholesale and correspondent channels.
References
- ^ down payments (www.housingwire.com)
- ^ mortgage rates (www.housingwire.com)
- ^ down payment assistance (www.housingwire.com)