Seller-Paid Buydown
A seller-paid buydown reduces your effective interest rate during the first 1–3 years of the loan — easing into homeownership during the most cash-strapped years.
What is Seller-Paid Buydown?
In a high-rate environment, a temporary buydown is often the most overlooked path to monthly affordability. Sellers and builders use buydowns as a creative concession that benefits the buyer without dropping the sale price.
The most common structure is 3-2-1: your effective rate is 3 percentage points lower in year one, 2 lower in year two, 1 lower in year three, then settles at the permanent rate from year four on.
Buydown funds are held in escrow and effectively prepay part of your interest. If rates drop and you refi out, unused buydown funds return to the seller — but you keep the lower payments you already received.
Who qualifies?
This program is built for borrowers who match the criteria below. If you're not sure, send us a quick message and we'll confirm in minutes.
Talk To An Officer- Buyers nervous about today's rate environment
- Newly relocated buyers with first-year transition costs
- Anyone negotiating for seller concessions in slower markets
- Move-up buyers stretching budget temporarily
Key benefits
Lower Year-One Payments
3-2-1 buydown drops rate by 3%, 2%, 1% in years 1, 2, 3.
Seller-Funded
Cost is paid by the seller as a concession — common in slower markets.
Permanent Rate Stays Available
After buydown period, rate returns to permanent locked rate.
Refinance Optionality
If rates drop, you can refi out during the buydown period.
How it works
Negotiate Concession
Your agent negotiates the buydown as part of the offer.
Lock Permanent Rate
Lock the underlying 30-year rate.
Seller Funds Escrow
Buydown funds escrowed at closing.
Reduced Payments
Enjoy 1–3 years of reduced payments before rate steps to permanent.
Frequently Asked
Get a personalized Seller-Paid Buydown quote.
Tell us a little about your scenario. We'll come back to you with real numbers — within one business hour.
No commitment. No fees. No surprises.