State Loan

As your local mortgage experts, we offer competitive rates and customized solutions to help you find, secure, and afford your ideal home.

What is a 2-1 Buydown Loan

A 2-1 Buydown Loan is a type of mortgage that allows borrowers with limited funds to qualify for a home loan. It helps reduce the borrower's monthly payments during the first two years of the loan by temporarily lowering the interest rate. This loan program "buys down" the interest rate of the loan, providing a discounted interest rate for the borrower during the first two years of repayment.

Once the introductory period expires, the interest rate will gradually increase until it reaches the regular market rate. This is done in a series of increments, usually by increments of 1% until the market rate is reached. The borrower is then obligated to repay the loan at the increased rate.

What are the requirements for obtaining a 2-1 Buydown Loan?

To obtain a 2-1 Buydown Loan, you must meet the standard requirements for a mortgage loan. You must also have a stable employment history and sufficient income to make the monthly repayments.

Another requirement is that you must have a credit score of at least 620. While this loan program may be beneficial for people with lower credit scores, a higher score will provide significant benefits. A higher score will ensure that you receive a competitive rate during the first two years of the loan.

A 2-1 Buydown Loan also usually requires the same level of documentation that standard loans require. You'll need to provide proof of income, tax returns, and other financial documents.

Contact Sam and Anisha Mauldin - TrueWay Mortgage to assess whether a 2-1 Buydown Loan is the right fit for your financial situation.

State Loan

At Sam and Anisha Mauldin - TrueWay Mortgage, we understand that navigating the home buying process can be difficult and somewhat intimidating. It's our goal to provide you with the information you need to make the right decision when it comes to your home financing needs! We have provided the information below to answer some of the most common questions about 2-1 Buydown Loans.

What is a 2-1 Buydown Loan

A 2-1 Buydown Loan is a type of mortgage that allows borrowers with limited funds to qualify for a home loan. It helps reduce the borrower's monthly payments during the first two years of the loan by temporarily lowering the interest rate. This loan program "buys down" the interest rate of the loan, providing a discounted interest rate for the borrower during the first two years of repayment.

Once the introductory period expires, the interest rate will gradually increase until it reaches the regular market rate. This is done in a series of increments, usually by increments of 1% until the market rate is reached. The borrower is then obligated to repay the loan at the increased rate.

What are the requirements for obtaining a 2-1 Buydown Loan?

To obtain a 2-1 Buydown Loan, you must meet the standard requirements for a mortgage loan. You must also have a stable employment history and sufficient income to make the monthly repayments.

Another requirement is that you must have a credit score of at least 620. While this loan program may be beneficial for people with lower credit scores, a higher score will provide significant benefits. A higher score will ensure that you receive a competitive rate during the first two years of the loan.

A 2-1 Buydown Loan also usually requires the same level of documentation that standard loans require. You'll need to provide proof of income, tax returns, and other financial documents.

Contact Sam and Anisha Mauldin - TrueWay Mortgage to assess whether a 2-1 Buydown Loan is the right fit for your financial situation.

2-1 Buydown Loan

At Sam and Anisha Mauldin - TrueWay Mortgage, we understand that navigating the home buying process can be difficult and somewhat intimidating. It's our goal to provide you with the information you need to make the right decision when it comes to your home financing needs! We have provided the information below to answer some of the most common questions about 2-1 Buydown Loans.

More Than Just

Brokers

As a dedicated husband and wife team, we provide personalized, one-on-one service, ensuring that each loan solution is tailored to meet your specific goals—whether you're buying a home, refinancing, or consolidating debt. Our years of experience and commitment to honesty and integrity set us apart from larger, nationwide companies.

Contact Sam and

Anisha Mauldin -

TrueWay Mortgage