With our buydown loans, a veteran can enjoy a lower interest rate for the first one or two years, thanks to seller-paid concessions. Let’s explore the details of this beneficial program.
What is a Buydown?
A buydown is a mortgage financing technique that allows borrowers to obtain a lower interest rate for a temporary period, typically the first one or two years of the loan. This reduction in interest rate is achieved through payments made by the seller or builder, making it an attractive option for homebuyers looking to ease into their mortgage payments.
Program Highlights
– 30-Year Fixed Rate Mortgages: Our buydown program is available for 30-year fixed-rate mortgages.
– Primary Residences Only: This program is designed for primary residences.
– Eligible Property Types: Single-family residences, Planned Unit Developments (PUDs), and condos are all eligible under this program.
– VA, FNMA, and FHA Options: While primarily focused on VA loans, our buydown program is also available for FNMA and FHA loans.
– High Balance Option Available: For those purchasing in high-cost areas.
– Purchase Transactions Only: This program is exclusively for purchase transactions.
– Flexible Terms: Choose between a 24-month (2-1) or a 12-month (1-0) buydown term.
– Qualification Based on Note Rate: Borrowers are qualified based on the note rate, not the buydown rate.
– Seller/Builder Concessions: The cost of the buydown is covered by seller or builder concessions, with a maximum of 4% for VA loans.
Opting for a buydown can significantly reduce your initial mortgage payments, providing financial relief during the early years of homeownership. This can be particularly beneficial for those anticipating an increase in income or other financial changes in the near future. By lowering your initial payments, you can allocate funds to other important expenses or savings goals.
Take Advantage of Our 2-1 and 1-0 Buydown Program
Our 2-1 and 1-0 Buydown programs are designed to offer flexibility and savings, helping you transition smoothly into your new home. Whether you’re a first-time homebuyer or looking to upgrade, our team is here to guide you through the process and ensure you make the most of this opportunity.
Contact us to learn more about how our VA Loan Buydown program.
