The 2-1 Seller-Paid Buydown Program is simple: builder partners contribute an upfront fee, which lowers interest rates up to two percentage points for the first two years. This knocks down initial monthly payments, so funds can be allocated toward transforming a new house into a dream home, which also builds equity for your borrower’s home!

Beneficial Situations

In general, the 2-1 buydown option will be great for anyone with limited income for some short period of time, but who expect income to increase significantly by year three of the loan. Some highly prepared college students, for instance, might have just enough savings to make lower payments for a couple years before graduating, but then can expect a higher-paying job after this point and can therefore, hope to avoid larger payments. There may be several other situations where this scenario aligns if future income is expected to rise.

For more on the 2-1 Seller-Paid Buydown Program, or to learn about other Kind programs, contact one of our mortgage professionals, today!