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Increasing Affordability with a USDA or VA Temporary Interest Rate Buydown

April 12th, 2024 by Sean Stephens

Increasing Affordability with a USDA or VA Temporary Interest Rate Buydown in Florida, Texas, Tennessee, and Alabama!

In the realm of homeownership, navigating the world of increased sales prices, mortgage rates, and affordability can often feel like a daunting task. However, there exists a valuable tool that can significantly impact a buyer’s ability to purchase a home:

Temporary interest rate buydowns utilized in conjunction with No Down Payment USDA Rural Home Loans and VA loans.

Combining a temporary interest rate buydown along with a USDA or VA loan can make a substantial difference with the initial affordability of a home, allowing more individuals and families to achieve their dream of homeownership.

Increasing Affordability with a USDA or VA Temporary Interest Rate Buydown

As a follow up to a previous online workshop, this replay we will dive into USDA, VA, FHA, and Conventional loan programs and explain the benefits of temporary interest rate buydowns, discount points, and seller concessions.

I hope you find this presentation helpful, but please let our team know if you have any additional questions or if you would like to take advantage of our Free 2nd Opinion Service which is great for both new pre-qualifications and those loans that are currently in progress.

Call/Text: 863-593-2001

Increasing Affordability with a USDA or VA
Temporary Interest Rate Buydown

The agenda for this online workshop covered the following topics:

1. Mortgage updates and highlights:

USDA home repair loans in Florida, Texas, Tennessee, or Alabama

  • USDA Rural Housing – No Down Payment Loans
  • VA Loans – No Down Payment Loans
    • Credit Flexibility
    • Manufactured Homes (Singlewide and Doublewide)
    • Increased Loan Amounts
    • Expanded Qualifying Ability
  • FHA LoansIncreasing Affordability with a USDA or VA Temporary Interest Rate Buydown, Discount Points, or Seller Concessions
    • Credit Flexibility
    • 3.5% Down Payment
    • Higher priced mortgage insurance premium costs
    • No area or income limit restrictions
  • Conventional Loans
    • Fannie Mae and Freddie Mac
    • Maximum Financing Options:
      • 97% for Primary Residences
      • 90% for Second Homes
      • 80% for Investment Properties
  • Private Road Guidelines for USDA, FHA, & Freddie Mac:
  • Private Road Guidelines for VA & Fannie Mae:
      • Private Road Maintenance Agreement required.
      • VA does offer the potential of a waiver to the Private Road Maintenance Agreement requirement.

2. What is a 2/1 Buydown?

  • What is a temporary subsidy buydown?
  • Temporary Buydown Agreement
  • What type of transaction could be ineligible for a temporary buydown?
  • Buydown Examples

3. What are Discount Points?

  • Definition
  • Who can pay for discount points?
  • Compare and contrast Discount Points with a Temporary Buydown

maximum va seller concessions in Florida

4. Seller Concessions or Interested Party Contributions

  • Overview and comparison between loan programs
  • Fannie Mae
  • FHA
  • USDA Seller Concessions
  • VA Seller Concessions


Thank you again for forwarding and sharing today’s video with any friends, family, co-workers, or clients who are looking to buy, sell, or refinance!

As always, I want everyone to make it a great day, and look forward to seeing you right here for the next tip of the week!

P.S. – You can download our “USDA Blueprint for Success” by CLICKING HERE.

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