2-1 Buydowns are Here!

On Fannie and FHA Loans

Reach more clients with our 2-1 Buydown!

On Fannie and FHA* Loans

Take advantage of our 2-ONE Buydown Program to help clients with a reduced rate for the first two years of their loan. Good on FNMA and FHA loans!

This is a great incentive for buyers to enjoy a temporary rate reduction on their interest rate all while getting into the home they want. Talk with your AE about this program.

Program Highlights

• 30-year Fixed Rate Mortgages
• Primary Residences only
• Single Family Residences, PUD and Condos
• FNMA and FHA only – No DPA allowed
• Purchase Transactions only • Term: 24 months (2-1)
• Borrower(s) are Qualified off Note Rate not buydown rate
• Buydown cost is paid by Seller/Builder concessions
• Seller Concessions: Max 6% on FHA Max 6% up to 90% FNMA Max 3% greater than 90% FNMA

How does a 2-ONE Buydown work?

Pretty simple. The Borrower enjoys a reduced interest rate for the first year of the loan and a slightly higher rate for the second year. The rate then goes up to the full rate on the third year for the life of the loan.
 
A seller can pay for the buydown. The payment is made in the form of mortgage points or a lump sum in escrow account and used to subsidize the borrower’s reduced monthly payments.

What are the benefits of a 2-ONE Buydown?

It may help some borrowers afford a larger mortgage and more expensive home. Plus it buys them some time before their mortgage payments rise to the full rate which can help if their income is also rising from year to year.
 
Your advantage is that it helps you provide an incentive to more borrowers who may not have thought about using this program. Thus, reaching more clients. Its a win-win!

How to get started with a 2-ONE Buydown?

If you are an approved Broker with Forward Lending, contact your Account Executive.

If you aren’t yet approved, get approved: https://forwardlendingmtg.com/get-approved/

*Not available on Manually Underwritten loans for FHA. Restrictions apply. 

 

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