Lower your initial housing costs with temporary buydown options
Our 1-0, 2-1 and 3-2-1 temporary buydown programs help reduce your interest rate and monthly housing payment for the first few years of your loan
What is a Temporary Buydown?
A buydown helps make home ownership more affordable by reducing your interest rate during the first one to three years of your loan. For example, a 3-2-1 Buydown eases you into your new home payments by reducing your effect interest rate by 3% in your first year of ownership, 2% in your second year, and 1% in year three. Comparatively, a 2-1 b Buydown reduces your interest rate by 2% in the first year and 1% in year two.
Benefits of a temporary buydown
- Buy a home with confidence, knowing you’ll enjoy a lower monthly payment during your first one to three years of home ownership.
- Free up your cash flow to personalize your new home or save money.
- Protect yourself from rising rates.
How does a temporary buydown work?
- Make an offer on a single-family primary or secondary home.
- Take out a conventional (including high balance) or HomeReady 30-year fixed-rate loan.
- At closing, the seller deposits escrow funds equal to the difference between your permanent 30-year fixed payment and the reduced payments that will be in effect for the loan’s first one to three years.
- Each month, a small portion of the funds is released from the account and applied to your mortgage payments.
- Apply for available financing options: Conventional, FHA and VA.
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