2-1 Temporary Buydown Mortgages are Available!
Receive a quote on a 2-1 Temporary buydown mortgage today.
Is A 2-1 Temporary Buydown Mortgage Right For You?
Do I Qualify?
What? Option for buyers to reduce their interest rate and in turn the monthly payment for a limited period of time through an upfront lump sum fee.
Who? Only seller concessions can pay the upfront lump sum fee – seller paid temporary rate buydown.
How? Borrowers must qualify off of the note rate.
About 2-1 Temporary Buydown Loans
FHA, VA and Conventional Purchases only
No USDA or Non-Agency products
Conventional = Primary and Second Homes
FHA and VA = Primary only
2-1 and 1-0 tiers
Temporary Rate Buydown fee shown in Section H of fee screen
Temporary Rate Buydowns are not available for manufactured homes
The 2-1 Temporary Buydown Loan Process
Here’s how our home loan process works:
Year 1 – 2% lower than the note rate
Year 2 – 1% lower than the note rate
Year 3 – Full note rate
The 1-0 Temporary Buydown Loan Process
Year 1 – 1% lower than the note rate
Year 2 – Full note rate
Let’s crunch some numbers!
Key Benefits
Great opportunity to help Sellers get a property sold without affecting the sales price. With the rising interest rate environment, sellers love this product. The benefit goes directly to the borrower.
A great way for borrowers to use any excess seller concessions
Creates monthly savings to allow the borrower to get settled in their home and be more financially flexible to purchase furniture, etc.
In this market and with our partners, borrowers will more than likely be able to refinance to a lower rate than the one they will adjust to after the 2 years
These new options will allow borrowers additional purchase power in certain situations and will allow brokers to continue to use UWM for more of their business
NOTE: If the property is sold by the Borrower and the mortgage is prepaid in full during the buydown period, the non-disbursed and available buydown funds shall be credited to the unpaid principal balance of the mortgage.
NOTE: If a refinance occurs, the buydown funds are held in an escrow account. These funds will be used to pay down the principal of the new loan.
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