Get the confidence of a fixed-rate with a temporary buydown

Newfi Wholesale Products

Newfi’s temporary buydown program allows borrowers to utilize seller/builder concessions* to buy down the payment amount for the first 1 or 2 years.

By providing payment relief on their new home, borrowers have more options when it comes to where they spend their money.

PROGRAM HIGHLIGHTS

  • Conforming, High Balance and FHA products
  • Fixed Rate only
  • Purchase transactions of primary residence
  • Buydown funds provided by Seller or Builder

PROGRAM SPECIFICS

  • Minimum 680 FICO
  • Owner occupied, purchase, fixed rate only
  • Borrower & Lender funded (in whole or part) buydown accounts are ineligible
  • Maximum payment amount reduction of 2% with maximum increase of 1% per year
  • Borrower must be qualified at note rate without benefit of buydown

 

1-0 Temp Buydown Terms Year 1 Year 2
Interest Rate 5.00% 4.00% 5.00%
Payment $2,147 $1,910 $2,147.00
Cost of buydown $2,844 $2,844
Seller Concession 3% $18,000
Remaining Concession Balance $15,156
Purchase Price $600,000
Loan amount $400,000

 

2-1 Temp Buydown Terms Year 1 Year 2 Year 3
Interest Rate 5.00% 3.00% 4.00% 5.00%
Payment $2,147 $1,686.00 $1,910.00 $2,147.00
Cost of buydown $8,376 $5,532.00 $2,844.00
Seller Concession 3% $18,000
Remaining Concession Balance $9,624
Purchase Price $600,000
Loan amount $400,000

* Interested party contribution limitations apply