How this mortgage path is commonly used
A temporary buydown does not permanently reduce the note rate. Funds in a buydown account supplement the borrower’s reduced payments during the initial period.
Potential features
- Common 2-1, 3-2-1, and 1-0 structures
- Potential early payment relief
- May support purchase negotiations
- The underlying note remains fixed when paired with a fixed-rate loan
Important considerations
- Qualification generally uses the note payment under applicable rules
- Payments rise on schedule
- Concession and contribution limits apply
- Compare with price reduction or permanent points
Common starting points
Buyers expecting near-term income growthTransactions with eligible seller or builder contributions
A practical way to evaluate your options
01
Define the goal
Purchase, refinance, build, invest, or use equity.
02
Review the full payment
Include taxes, insurance, mortgage insurance, and association dues.
03
Prepare the profile
Income, assets, credit, property, and occupancy all shape available paths.
04
Complete underwriting
Only a complete application and underwriting can establish approval and terms.
Educational information, not a commitment to lend
Program availability, guidelines, pricing, and documentation requirements can change. Contact duPont Lending for information specific to your scenario.