Reach more clients with our 1-0 and 2-ONE Buydown!
On VA, FNMA, and FHA* Loans
High Balance and FNMA HomeReady available
Take advantage of our 2-ONE Buydown Program to help clients with a reduced rate for the first two years of their loan. For a 1-0 Buydown the borrower enjoys a 1% reduction only on the first year. Good on VA, FNMA, and FHA* loans!
This is a great incentive for buyers to enjoy a temporary rate reduction on their interest rate all while getting into the home they want. Talk with your AE about this program.
Program Highlights:
30 year Fixed Rate Mortgages
Primary Residences only
Single Family Residences, PUD and Condos
VA, FNMA and FHA – No DPA allowed
High Balance available
FNMA HomeReady option available
Purchase Transactions only
Term: 24 months (2-1)
Term: 12 months (1-0)
Borrower(s) are Qualified off Note Rate not buydown rate
Buydown cost is paid by Seller/Builder concessions
Seller Concessions are different by loan program, check your matrix or speak with your Account Executive.
Take advantage of offering this 2-1 and 1-0 Buydown program to your clients! Restrictions apply so contact your Account Executive for more details.
Temporary Buydown Calculator
Available to assist in understanding the buydown monthly payment for our buydown programs.
Please contact your Account Executive for more information.
Pretty simple. For a 2-1 Buydown for example, the borrower enjoys a reduced interest rate for the first year of the loan and a slightly higher rate for the second year. The rate then goes up to the full rate on the third year for the life of the loan. For a 1-0 Buydown the borrower enjoys a 1% reduction only on the first year.
A seller can pay for the buydown. The payment is made in the form of mortgage points or a lump sum in escrow account and used to subsidize the borrower’s reduced monthly payments.
What are the benefits of a Buydown
It may help some borrowers afford a larger mortgage and more expensive home. Plus it buys them some time before their mortgage payments rise to the full rate which can help if their income is also rising from year to year.
Your advantage is that it helps you provide an incentive to more borrowers who may not have thought about using this program. Thus, reaching more clients. Its a win-win!
How to get started with a Buydown
If you are an approved Broker with LoanStream, contact your Account Executive.