Seller-paid buydown.

The seller contributes to lower your payment in the early years of the loan. How it works, who it helps and what to watch for, explained first.

Pre-qualify

Seller-paid buydown, at a glance.

What it is

The seller pays a lump sum at closing that is used to reduce your payment for the first one to three years. After that, the payment returns to the full amount.

Often used for

Easing into a payment, especially when you expect your income to rise or plan to refinance if rates fall.

Keep in mind

You qualify on the full payment, not the reduced one, and the full payment arrives on schedule. Your loan officer maps out each year.

How it works

1
Tell us about the home and the offer
The price, what the seller may be willing to contribute and your budget.
2
Your loan officer models the buydown
Each year of payments next to a price reduction of the same amount, so you can see which saves more.
3
You choose, then we close
The buydown is written into the contract, funded at closing and applied automatically.

Who it tends to fit.

A seller willing to contribute

The market or the listing gives you room to negotiate.

Income on the rise

You expect to earn more by the time the full payment arrives.

A refinance in mind

You may refinance if rates fall before the buydown ends.

Room in the budget

You can afford the full payment today, with the early years as a cushion.

Sometimes a straight price reduction saves you more over the life of the loan. Your loan officer shows you both.

Questions about buydowns.

How long does the lower payment last?

Usually one to three years, depending on the structure. Your loan officer explains the schedule for your offer.

Who pays for it?

The seller, through a credit at closing. In some cases a builder or lender offers one.

Do I qualify on the lower payment?

No. You qualify on the full payment, which protects you when the buydown ends.

What happens if I refinance or sell early?

Any unused buydown funds are typically applied to your loan balance. Your loan officer confirms for your loan.

Buydown or price reduction?

It depends on how long you keep the loan and what the seller will offer. Your loan officer runs both numbers for you.

Ready to look at a seller-paid buydown?

Tell us about the home and the offer you are considering. A loan officer models the buydown against a price reduction before anything is offered. Pre-qualifying will not affect your credit score.

Pre-qualify with a buydown

Seller-paid buydown.