What is it?
A 30-year fixed rate loan where the first two years of interest is subsidized by seller paid contributions.
What is the benefit?
Borrowers receive a below market payment through the early years of the loan. This does not affect their 30-year interest rate delivering the security of a fixed interest rate through the life of the loan.
- 30-year fixed interest rate – not an adjustable rate mortgage (ARM)
- Available on Conventional, VA, FHA, and USDA financing
- Seller funded
- Extended rate cap available for new construction with float down option within last 30 days prior to close
*The 2-1 buydown must be reflected in the sales contract's additional terms stating seller will pay the cost. A Buydown Agreement must be signed by the borrower, seller, and lender. The subsidized payment is part of an escrow account. Rates change daily. Not available on all loan programs and cannot be combined with other offers or credits. No cash value.