Lower Your Rate by up to 3% at the start of your loan
Temporary Rate Buydowns: Start With a Lower Payment
With this exclusive program, buyers can enjoy interest rates that are 3% lower in the first year, 2% the following year and 1% lower in the third year.
Benefits
- Lower Payments: Ease into your mortgage with lower payments up front.
- Affordable Start: Makes monthly mortgage payments more manageable during the first three to two years.
- Open to More Buyers: Available to anyone who qualifies – not limited to first-time homebuyers.
- Extra Savings on Refinance: If you refinance before the buydown period ends, any unused buydown funds are applied directly to your loan principal.
Eligibility
- Maximum loan amount: $806,500
- Minimum 3% down payment
- Minimum credit score: 620
- Must be for a primary residence
NEXT STEP
Get your personalized consultation today.
- No obligation required
- No hit on your credit score
- Quick and hassle-free process
- No paperwork needed
Program Benefits
Immediate Savings on Monthly Payments
For the most popular, the 2-1 buydown, your payments will be reduced by 2% in the first year and 1% in the second year, compared to your original note rate. These savings can make a huge difference in your overall affordability during the early years of your mortgage.
Flexibility to Refinance
If you decide to refinance during the first two years, any unused buydown funds will be applied to your mortgage balance, reducing the principal and potentially lowering your payments even further.
Perfect for First-Time and Move-Up Buyers
Whether you’re buying your first home or upgrading to a larger property, this program helps make homeownership more affordable. You can benefit from lower payments right away, and there are no income restrictions or limits on who can apply, making it an accessible option for a variety of buyers.
How It Works
The Temporary Buydown Program helps you reduce your mortgage rate for the first years of your loan, lowering your monthly payment. Here’s how it works:
Year 1: Your effective interest rate will be 2% lower than your original note rate. This means you’ll make significantly lower monthly payments during your first year of homeownership, giving you immediate financial relief.
Year 2: Your effective interest rate will be 1% lower than your original note rate. While the rate adjustment is modest, you’ll still save money compared to your original note rate during the second year.
Year 3 and Beyond: Starting in the third year, your interest rate returns to the original note rate, which remains fixed for the rest of your loan term. This ensures long-term stability and predictability in your monthly payments.
This structure allows you to enjoy upfront savings and flexibility while still securing a stable, fixed rate after the two-year buydown period ends.
FHA mortgage insurance includes two components: an Upfront Mortgage Insurance Premium (UFMIP), typically financed into the loan, and an ongoing Monthly Mortgage Insurance Premium (MIP). The UFMIP equals 1.75% of the loan amount, while the monthly MIP ranges between 0.15% and 0.75% annually, depending on the loan size, term, and down payment.
One of FHA’s biggest advantages is that its monthly mortgage insurance is not tied to credit scores, unlike conventional mortgage insurance. This can result in much lower costs for borrowers with less-than-perfect credit.
The 2-1 Buydown Program helps you reduce your mortgage rate for the first two years of your loan, lowering your monthly payment without any upfront cost. Here’s how it works:
Year 1: Your effective interest rate will be 2% lower than your original note rate. This means you’ll make significantly lower monthly payments during your first year of homeownership, giving you immediate financial relief.
Year 2: Your effective interest rate will be 1% lower than your original note rate. While the rate adjustment is modest, you’ll still save money compared to your original note rate during the second year.
Year 3 and Beyond: Starting in the third year, your interest rate returns to the original note rate, which remains fixed for the rest of your loan term. This ensures long-term stability and predictability in your monthly payments.
This structure allows you to enjoy upfront savings and flexibility while still securing a stable, fixed rate after the two-year buydown period ends.
Program Highlights & Eligibility
Ways to fund the buydown
Seller-Paid: The seller can use concessions to cover the cost.
Lender-Paid: The lender can add the cost into the loan pricing.
Agent-Paid: Your real estate agent can apply their credits toward the cost.
Loan Amount
Eligible loan amounts up to $806,500. This gives flexibility for a wide range of buyers, including those looking at higher-priced homes.
Down Payment
Only a minimum 3% down payment is required — making the program accessible even if you don’t have a large amount of savings set aside.
Credit Score
Qualify with a minimum credit score of 620. Perfect for buyers with average or even less-than-perfect credit who still want upfront savings and a strong start Property Types
Available for single-family homes, condos, townhomes, and multi-family residences. Buyers can take advantage of the program across many property types.
Loan-to-Value (LTV)
Eligible for buyers with an LTV ratio between 80% and 97%, meaning you can put down as little as 3% and still qualify.
No Income Limits
Unlike some programs, there are no income restrictions, making the 2-1 Buydown available to a wide variety of homebuyers.
Occupancy Requirement
This program is designed for primary residences only — perfect for first-time buyers or anyone purchasing their next home to live in.
Take the Next Step with Jeremy Boillot
Buying a home is one of the biggest milestones in life, and Jeremy Boillot and his team are here to guide you every step of the way. Whether you’re ready to start your loan application online or want a free consultation to explore your options, we’ll help you understand how our FREE 2-1 Buydown Program can make homeownership more affordable from day one.