We are happy to announce that in partnership with Rocket Mortgage, we are now offering a Temporary Buydown where we will provide the credit for the interest rate buydown for qualifying purchases in lower-cost counties. There are qualifying requirements and restrictions that must be met in order to take advantage of this program.
This lender-paid buydown only works for a HomeReady or HomePossible purchase loan which has a loan amount of $350,000 or less. HomeReady and HomePossible are conventional loan programs that allow for a down payment as low as 3% (the down payment can come from a gift as well). The programs are not limited to first-home buyers but do have other restrictions as they must be used for the purchase of a primary residence.
The major restriction in qualifying for a HomeReady or HomePossible loan is that you can not make more than 80% of the ‘area median income’. Area median income refers to the area in which you are looking to purchase the property. Fannie Mae and Freddie Mac both provide maps where you can check the area median income for properties that may be of interest.
It is important to note that HomeReady and HomePossible do allow for higher loan amounts, you just would not get the temporary buydown subsidies paid for by the lender. You can still utilize a temporary buydown on higher loan amounts with these programs but they would require you to receive either a seller or realtor credit in order to pay for them.
To find out if this program would be right for you, feel free to reach out and talk to one of our Mortgage Loan Originators at (760) 930-0569.
