Seller & Lender Buydowns

Temporary rate buydown to lower a borrower's interest rate at the start of their loan.

Seller-paid 1- year or 2- year buydown options

1. 2-1 is a buydown of 2% in the first year and 1% in the second year. By the third year they are at the full rate. For example: if the borrows full rate is 7%, the first year rate would be 5%, the second year rate would be 6% and the third would be 7%.

2. 1-0 is a buydown of 1% in the first year. By the second year they are at their full rate. For example: if the borrows full rate is 7%. The first years rate is 6% and the second year is at 7%.

One application and one closing, saving money and time! A one-close construction loan provides funding for the construction costs and also the long-term mortgage when the building is complete. In some cases, it means buyers move quicker since they don't need to wait for a second closing.

Conventional 30-Year Fixed

2-1 Temporary Buydown on a $360,000 loan amt for a borrower with 740 FICO and 90% LTV

• The borrower must qualify for the full monthly payment (before the buydown rate is applied)

• Seller concessions are deposited as a lump sum into a buydown account. A portion of this sum is released each month to reduce the borrower's monthly payments