FOR HOME BUYERS
Temporary Buydown Loan: Lower Initial Mortgage Payments
Temporary buydown loans reduce your mortgage interest rate for the first 1–3 years, helping you ease into homeownership with lower initial monthly payments. A great option in rising rate environments, buydowns are often funded by sellers or lenders.
Key Requirements:
Lower Initial Payments
Save hundreds monthly for 1–3 years.
Smooth Transition
Gradual increase to full payment.
Flexible Use
Available on fixed-rate mortgages.
Third-party contributions
Often funded by seller, builder, or lender.
Guidelines for this Loan
If your details are close to these guidelines, we encourage you to apply or contact us. Even if you don’t qualify for an adjustable-rate mortgage, we could have other options for you.
Qualify at Full Rate
Estimate and Explore
Calculators are a great way to learn and see what’s possible.
Down Payment Calculator
Learn how much cash you need to buy the home in your mind.
Get More In-Depth Details
Articles that give you more information about this loan and explain how mortgages work.
- 1
- 2
Frequently Asked Questions
Answers to questions about this loan we heard from people like you during research.
What Is a 2-1 Buydown?
Your rate is 2% lower in year one and 1% lower in year two. It returns to full rate in year three.
Who Pays for the Buydown?
Usually the seller or lender. It can’t be paid by the borrower directly.
What Happens After the Buydown Period?
Your mortgage payment adjusts to the original note rate.
Can I Refinance Before It Adjusts?
Yes. Many buyers refinance before the full payment kicks in.
Is It Available on All Loan Types?
It’s commonly offered on FHA, VA, and conventional fixed-rate mortgages.
