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The program gives borrowers the opportunity to temporarily lower Interest Rate/Note Rate at the start of the loan. 

• Borrowers must qualify off the full note rate (before the rate buydown is applied)
• Total seller concessions shall be applied to temporary rate buydowns and other closer costs. 
• FHA, VA and Conventional purchases. 
• Conventional purchases for primary and second homes only. 
• FHA and VA for primary homes only. 

Choose between 1, 2 and 3-Year Temporary Rate Buydown options that can be paid by either seller or lender or a combination of each one (hybrid). 

Example of 2-1 Temporary Buydown Tiers

• 2 - 1  temporary rate buydown. 

Example:  Purchase price is $700,000 , Loan amount is $600,000, Note Rate/Interest Rate is 6.5% 

**For Rates and APRs please click here. 

Year 1 -  Rate will be 2% lower than Note Rate at 4.5%. 

Year 2 - Rate will be 1% lower than Note Rate at 5.5%. 

Year 3 - Full Note Rate at 6.5%. 

Total seller concessions needed is $14,338.44.  As a general rule, total seller concessions may not exceed 3% of purchase price.  For seller-paid option - total seller concessions are deposited as a lump sum into a buydown account. A portion of this sum is released each month to reduce borrower's monthly payments. 

Temporary Rate Buydown is a great option for almost any borrower especially if you are: 

• Expecting an increase in income in the next few years. 
• Receiving seller concessions and want to take advantage of a low fixed rate.
• Planning to save money to do renovations, make upgrades or buying furniture for your new home. 
• Going from renting to buying and want to ease your mortgage with a lower payment.  

Agents - please contact us ahead of time to calculate approximately how much seller concession is needed. When requesting for seller concession - please provide a signed addendum on Form 34 with what the exact verbiage should be "Total seller concession of $X,XXX shall be applied for temporary rate buydown and for other closing costs". 

Below are more examples of various Temporary Rate Buydown Options. 

Please email me to receive a copy of temporary rate buydown calculator email to you.