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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.

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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?

  1. Make an offer on a single-family primary or secondary home.
  2. Take out a conventional (including high balance) or HomeReady 30-year fixed-rate loan.
  3. 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.
  4. Each month, a small portion of the funds is released from the account and applied to your mortgage payments.
  5. Apply for available financing options: Conventional, FHA and VA.
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