FREE 2-1 Lender-Paid Temporary Buydown

Our FREE 2-1 Buydown Program is designed to make homeownership more affordable from day one. It allows homebuyers to reduce their interest rate for the first two years of their mortgage – covered entirely by JVM Lending. Whether you’re a first-time homebuyer or moving to a new home, this program can significantly lower your monthly mortgage payments for the first two years of owning your home.

Program Benefits

Immediate Savings on Monthly Payments

For the first two years, your payments will be reduced by 2% in the first year and 1% in the second year, compared to your original note rate. These savings can make a huge difference in your overall affordability during the early years of your mortgage.

Flexibility to Refinance

If you decide to refinance during the first two years, any unused buydown funds will be applied to your mortgage balance, reducing the principal and potentially lowering your payments even further. Plus, you can take advantage of our Rate Drop Free-Fi™ program to refinance without paying any fees or closing costs.

Perfect for First-Time and Move-Up Buyers

Whether you’re buying your first home or upgrading to a larger property, this program helps make homeownership more affordable. You can benefit from lower payments right away, and there are no income restrictions or limits on who can apply, making it an accessible option for a variety of buyers.

How It Works

The JVM FREE 2-1 Buydown Program helps you reduce your mortgage rate for the first two years of your loan, which lowers your monthly payment without any upfront cost. Here’s how it works:

1. Year 1: Your effective interest rate will be 2% lower than your original note rate. This means you’ll make significantly lower monthly payments during your first year of homeownership, providing financial relief early on.

2. Year 2: Your effective interest rate will be 1% lower than your original note rate. While the rate increase is modest, you’ll still save money compared to your original note rate during the second year of your mortgage.

3. Year 3 and Beyond: Starting in the third year, your interest rate will return to the original note rate, which will stay fixed for the remainder of the loan term. The return to the original rate brings stability and predictability to your payments.

This structure allows you to enjoy immediate financial relief, while still locking in a stable rate that remains fixed after the two-year buydown period ends.

Program Highlights & Eligibility

No Costs to You or the Seller

This is a lender-paid temporary buydown, meaning neither you nor the seller pays for the rate reduction. The lender covers the cost, making it a no-expense program that can significantly lower your monthly payments during the first two years.

Loan Amount

You can qualify for loans up to $832,750. This makes the program available for a wide range of homebuyers, including those looking at higher-priced properties.

Down Payment

A minimum down payment of 3% is required. This makes the program accessible to buyers who may not have a large amount of savings for a down payment.

Credit Score

You only need a minimum credit score of 620 to qualify. While the program helps those with average credit scores, it is also a great opportunity for buyers with less-than-perfect credit to lock in a lower interest rate at the beginning of their mortgage term.

Property Type

The program applies to single-family homes, townhomes, condos, and multi-family residences. This flexibility allows buyers to take advantage of the program across various property types.

Loan-to-Value (LTV)

The program is available for buyers with a loan-to-value (LTV) ratio between 80% and 97%. This means that you can put down as little as 3% and still qualify for the program.

Income Limits

There are no income limits for this program. This makes the 2-1 Buydown available to a wide range of homebuyers, regardless of their income level.

Occupancy
This program is only available for primary residences, so it’s perfect for those buying their first home or moving to a new primary residence.

Frequently Asked Questions

How does the 2-1 buydown work?

Your effective rate is reduced by 2% in the first year and 1% in the second year. In the third year, your rate returns to the original note rate for the remaining loan term.

Who pays for the buydown?

JVM Lending covers the full cost of the buydown. There is no cost to the buyer or the seller.

Are there income limits for this program?

No. There are no income limits. The only requirements are a minimum 3% down payment and a 620 credit score.

What property types qualify?

Single-family homes, townhomes, condos, and multi-family residences are all eligible. The program is for primary residences only.

Take the Next Step with JVM Lending

Our team at JVM Lending is here to guide you every step of the way. Start your JVM loan application online or contact us today to discuss your homeownership goals and learn more about how JVM’s FREE 2-1 Buydown Program could be the key to unlocking your dream home.