2-1 Buydown

For interested party contributions to lower borrower cost for the first 2 years

A 2-1 buydown provides a two-year reprieve from elevated rates for borrowers, expanding your reach to more potential underserved clients.

640

Min Fico

(680 minimum Platinum Jumbo)

80%

Max LTV

Available on the following programs:

Bank Statement Loans
Full Doc Platinum Jumbo
Full Doc Portfolio Select
Asset Qualifier

Purchase transactions only
Eligible for primary residences
30 year fixed rate only
Buydown fee may be paid by seller or builder but must be written into the contract

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FAQ’s

A 2-1 Buydown is a temporary interest rate reduction on a 30-year fixed mortgage, lowering the rate by 2 percent in year one and 1 percent in year two before returning to the full note rate.

The cost is funded by an interested party, typically a seller or builder, and must be included in the purchase contract.

Eligible programs include Bank Statement, Platinum Jumbo, Portfolio Select, and Asset Qualifier loans for primary residence purchases.

The reduced initial payment may improve early-year affordability and debt-to-income calculations, subject to underwriting standards.

Yes. The 2-1 Buydown applies to a 30-year fixed-rate mortgage.

What is the benefit to originators who use Non-QM loan products?

Originators who utilize Non-QM offer a service that their competition may not offer. They become an expert and go-to for the Non-QM borrower. The benefit is increased referrals and business growth despite changes in the market. Continue to increase your volume each year regardless of fluctuating interest rates, tighter Agency guidelines, and a slowing refinance market.

Additional Program Options

Bank Statement Questionnaire

Our bank statement questionnaire collects some basic information on your financial history and expenses. This information will be used to help assess financial stability.

Download Questionnaire

2-1 Buydown Calculator

Interested in knowing how a 2-1 buydown would affect your clients home purchase? With our 2-1 buydown calculator, you will be able to determine how this will benefit your clients financial situation.

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