Power buying firm Ribbon announced an expansion of its RibbonReserve product on Tuesday. Homebuyers using the RibbonReserve product will now receive a 12-month price lock on the purchase price of their home.
Through RibbonReserve, Ribbon purchases the home on behalf of the buyer, providing up to 12 months to secure financing. Ribbon leases the home to the buyer, then sells back with a guaranteed home price lock for 12 months.
The firm says that this extension will allow first-time homebuyers more time to secure the best financing option for them, and it will also provide existing homeowners buying a new home with more time to sell their current home.
“We are in the middle of a major housing crisis with accessibility becoming harder on a daily basis. One of the most consistent things we hear — from agents, loan officers and their clients — is the challenge of affordability as inventory and mortgage rates see-saw,” Shaival Shah, co-founder and CEO of Ribbon, said in a statement.
Ribbon believes that this is the perfect time to launch this product as many prospective homebuyers have paused their home search in hopes that mortgage rates will drop. With the extension on RibbonReserve, buyers can purchase their home now and continue to wait for a better financial situation, while still having the purchase price of their home guaranteed.
Founded in 2017, Ribbon currently operates in 17 states. In late-July, the firm laid off 136 employees due to the shifting market conditions.
