CBC Mortgage Agency, a Native American wholly owned and federally chartered housing finance agency, introduced a buydown feature for its down payment assistance (DPA) program for Federal Housing Administration first mortgage financing, according to a press release.
This new feature comes after the company decreased the interest rate offered on its down payment assistance to minimize the impact of high first mortgage rates and high home prices on low-to-moderate borrowers.
Borrowers now receive additional support with lowered interest rates in the first years of homeownership, plus down payment assistance.
“The addition of a 2-1 and a 1-0 buydown feature is CBC Mortgage Agency’s continued response to the ongoing effect of the higher interest rates,” National Program Director Cari Zwick said in the release. “We’ve had a lot of requests for a buydown feature, and we hope it provides some relief to buyers during the current state of the housing market.”
The addition of the buydown feature, which is either a 2-1 buydown or a 1-0 buydown, lowers the interest in the first formidable years of homeownership, which may make a significant difference in helping borrowers purchase a home if they can make the payments once the interest rate increases.