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, closing costs, prepaid expenses or rate buydowns.
Homebuilders have been seeking more flexible financing tools as affordability pressures such as mortgage rates 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 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.
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