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Conforming Buydown

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A temporary buydown is when a party in a mortgage transaction pays a lump sum in order to reduce the interest rate temporarily for early years of the loan. This can help a buyer ease into the full mortgage payment at the beginning of the loan term.

Product Features:

  • Owner occupied and Second home

  • Purchase - Fixed Rate Only

  • 3-2-1, 2-1, and 1-0 Buydown options

  • FICO Conv 660 

  • Funds may come from the lender, seller or other eligible interested party

  • Interested Party Contribution (IPC) limits apply 

  • Qualify at the full NOTE rate

  • AUS Approval only (no manual UW)

  • Buydown Agreement is required to be signed by all parties at closing 

  • Buydown terms will not be reflected on the Note or Mortgage.

  • In the event that the mortgage loan is paid in full prior to exhaustion of the buydown deposit funds, any remaining and undistributed sums in the buydown deposit fund will be credited to the unpaid mortgage balance.


Eligible property types: 

  • 1 to 4-unit properties 

  • Condos

  • PUD 


***Manufactured homes are NOT eligible for temporary buydowns***


For more information please visit:

Conforming Buydown Product Folder


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