Are you looking for a program that offers lower initial monthly payments with the stability of predictable payment increases? Our Preferred Lender, Fairway has a loan program that can help!
A temporary buydown allows you to benefit from a temporary reduction of the monthly payment of principal and interest during the first one to two years of your mortgage. Having a lower monthly mortgage payment through a temporary buydown could provide extra cash over the first years that could assist with other homeownership expenses. With a sellerfunded buydown, you have the opportunity to save money up front at no cost to you.
Fairway Mortgage offers temporary buydowns on the following loan programs:
Conventional 2/1 temporary buydown
FHA 2/1 and 1/0 temporary buydown
VA* 1/0 temporary buydown
USDA 2/1 and 1/0 temporary buydown
A 2/1 temporary buydown is a temporary reduction below note rate of two percent (2%) during the first year and a reduction below note rate of one percent (1%) during the second year of the loan, after which the interest rate reverts to the full note rate for the remainder of the loan. The interest rate change from years 1 to 2 is automatic, and you are not required to requalify for the loan. A 1/0 temporary buydown works the same way, but the reduction below note rate is one percent (1%) for the first year of the loan, after which the interest rate reverts to the full note rate for the remainder of the loan.
Note: The borrower is required to qualify at the full note rate.
Contact Fairway Independent Mortgage today to learn more: