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Talk to a Welcome Home RateBreak 2-1 Buydown Program Mortgage Expert
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Welcome Home RateBreak 2-1 Buydown
Start Rates As Low As 3.99% (6.455% APR)
With the Welcome Home RateBreak 2-1 Buydown borrowers using the HomeReady or Home Possible mortgage loan options can take advantage of a 100% lender funded buydown to reduce their interest rate 2% in year 1 and 1% in year 2, with year 1 interest rates starting as low as 3.99% (6.455% APR).
Millennial Home Loans, for a limited time only, is offering the Welcome Home RateBreak 2-1 Buydown program, which provides a temporary interest rate buydown of 2% in year 1 and 1% in year two. The maximum financed loan amount is up to $350,000 with a minimum down payment of 3% and a maximum down payment of 20%. Best of all, since the buydown is funded by the lender there is no contribution cost from the seller, Real Estate Agent, or Builder.
Welcome Home RateBreak 2-1 Buydown offers the following benefits:
- Start rate for year one can be as low as 3.99% (6.455% APR), based on a 5.99% (6.455% APR) HomeReady or Home Possible Loan.
- The 2-1 buydown is 100% funded by the lender so no contribution is required by the seller, Real Estate Agent, or Builder
- Homebuyer can request maximum seller closing assistance from the seller when making an offer on a property
- No geographic restrictions
- The borrower can be a first-time homebuyer but isn’t required
Welcome Home RateBreak 2-1 Buydown Borrower Eligibility Requirements
- Area Median Income Requirements at 80% or less of the Area Median Income. If the subject property is in an underserved area the Area Median Income requirements may be waived. Use either the Fannie Mae Tool or Freddie Mac Tool to determine Area Median Income and underserved areas. Note, Freddie Mac may provide higher area median income levels than Fannie Mae.
- Maximum loan amount of $350,000
- Minimum year 1 start rate interest rate: 3.99% (6.455% APR)
- Maximum loan to value of 97%
- Minimum loan to value of 80%, which means the maximum purchase price can’t exceed $437,500 with a 20% down payment
- Must receive a DU Approval Eligible or LP Accept underwriting findings
- Minimum middle credit score of 620
- Maximum seller closing cost assist allowed up to 3% and 6% with a down payment less than 10% and 10% or greater, respectively
- Eligible properties include 1-4 units, primary residence, including eligible condos and PUDs
- Non-occupant co-signers are not allowed
Talk to a Welcome Home RateBreak 2-1 Buydown Program Mortgage Expert
Not ready to apply online? No problem.
Answer a few questions, and a Welcome Home RateBreak 2-1 Buydown Program Home Loan Mortgage Expert will call you back.
