Lower Your Interest Rate—Paid by the Seller
This temporary rate reduction makes homeownership more affordable upfront while keeping your long-term financing in place.
No Down Payment. No PMI. No Hassle—With a VA Loan
Exclusive benefits for veterans, active-duty service members, and eligible spouses.
Buy or refinance a home with no down payment and flexible qualification standards.
What Is a Seller-Paid Buydown?
A seller-paid buydown is a strategy where the seller covers the cost to temporarily lower your mortgage interest rate. Common options are:
2-1 Buydown: 2% lower the first year, 1% lower the second, then regular rate
1-0 Buydown: 1% lower for the first year
Great for buyers who expect their income to increase or plan to refinance later.
How It Works
🧾 Seller pays the buydown cost at closing
📉 Lower monthly payments during the buydown period
⏱️ Rate returns to the full amount after 1–3 years—no surprises
Why Use a Buydown?
Buydowns help bridge the gap when rates are high, giving buyers breathing room early on—while sellers use it as a negotiation tool.
Why Buyers & Sellers Like Buydowns:
💰 Lower monthly payments for 1–3 years
🙅♂️ No extra fees for the buyer
📉 Offsets high rates in today’s market
🤝 Helps deals close faster
🏡 Easier path to homeownership
Buydown FAQs
No. The seller covers the buydown cost as part of the closing terms.
Most lenders offer buydowns on conventional, FHA, and VA loans.
Often, yes—ask your lender for details.
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Texas Mortgage Disclosure: Consumers wishing to file a complaint against a mortgage banker or licensed residential mortgage loan originator should contact the Texas Department of Savings and Mortgage Lending (SML). Visit [www.sml.texas.gov](https://www.sml.texas.gov) for instructions and to obtain a complaint form. Mailing Address: 2601 North Lamar, Suite 201, Austin, TX 78705 • Toll-Free: 1-877-276-5550 (Required per 7 TAC §80.200(b))
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