We can offer a buydown on a USDA Rural Housing loan to clients. What this means is that the first year, the rate is 4.25%, the 2nd year, it is 5.25% and the 3rd through 30th year, it is fixed at 6.25%!
This is done by having the seller pay for the buy down. If there is a motivated seller, they can pay points to get the rate lowered the first and second years and then fixed for the remainder of the term. This is NOT an adjustable rate mortgage; it is fixed but just has the feature of having the 1st and 2nd year lower than the remainder of the term to allow a buyer to have a lower payment at the beginning.
Because it is a rural housing loan, the buyer can finance any and all closing costs that the seller doesn't pay which means that the funds a seller is willing to pay towards closing can be used to buy down the rate and the buyer still comes out of pocket with no money down for a true 100% financing program!
If you are a buyer and would like to take advantage of this, or if you are a seller who would like to explore this option, or if you are a Realtor® with motivated sellers for your listings, please contact me and we can discuss this program for you! We are able to offer these rates in Florida, Alabama, Georgia, North Carolina, South Carolina, and Tennessee!
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