About the 2/1 Temporary Buydown Program
eLEND’s 2/1 Temporary Buydown Program enables a portion of the borrower’s monthly Principal and Interest payment to be subsidized with a Seller credit and decrease their monthly payment for the first two years. The temporarily decreased payment allows borrowers to free up cash-flow for moving expenses and or other transitional expenses.
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Benefits of the 2/1 Temporary Buydown Program
- Significant monthly savings for the first two years, increasing the borrower’s financial flexibility.
- Great way for borrower to use any excess seller concessions.
- Option for sellers to assist marketing a property without affecting the sales price.
- Assists real estate agents and sellers by providing an additional negotiation option and may allow more of their offers to be accepted.
How Does the 2/1 Temporary Buydown Program Work?
- The purchase contract and/or addendum must reflect the total amount of seller credits and that the seller’s concession can be applied toward a Temporary Interest Rate Buydown and additional closing costs.
- The Seller and Borrower sign a Buydown Agreement at the time of loan submission and then a final agreement will be signed at closing.
- AFR provides a Temporary Buydown Calculator to assist when completing the Buydown Agreement.
How Do I Qualify for the 2/1 Temporary Buydown Program?
Qualification requirements may vary depending on the loan program used, but will be based on several factors including:
- Home must be used as your primary residence
- Program is available for fixed rate, 30-year terms only
- Acceptable credit history and score