Seller pays at closing
$0
Buyer saves in year 1
$0
Most the seller can pay
$0
The buyer's payment, year by year
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Your client sees a clean, simple page with these numbers.
Year by year
Monthly payment, principal and interest
| Year | Rate | Payment | Full payment | Saves/mo | Seller pays |
|---|
Compare all four
Tap a row to switch
| Type | Year 1 payment | Saves/mo | Seller pays | Allowed |
|---|
Same money, three ways to spend it
5 years
Why a seller might offer a buydown instead of a price cut
- More payment relief per dollar.
- The sale price stays the same.A price cut lowers the recorded sale price. A buydown credit does not.
- You know the cost up front.It is one dollar amount, agreed in the contract and paid at closing.
- You only pay if the home sells.The credit is paid out of your proceeds at closing, not before.
Seller pitch script
Listing remark line
Why a buyer might ask for a buydown
- Lower payments while you settle in.
- The seller pays for it.It is a seller credit at closing, up to your loan's limit on seller contributions.
- If you refinance early.Ask your lender what happens to unused buydown money. Many apply it to your loan balance.
- Budget for the full payment.
- You may still qualify at the full rate.Conventional loans approve you on the full payment, not the lower year-1 payment. FHA and VA rules differ, so ask your loan officer.
Buyer's agent to listing agent
Sample offer language
Key facts for loan officers
- Buydowns beat price cuts on payment.
- Temporary or permanent depends on how long the buyer keeps the loan.Short stay or likely refinance: temporary. Long stay past break-even: permanent points.
- Seller contribution limits (primary home).Conventional: 3% with less than 10% down, 6% with 10% to 24.99% down, 9% with 25% or more down. FHA: 6%. VA: 4% in concessions. The buydown counts toward the limit.
- Qualifying rate depends on the program.Conventional qualifies at the full note rate. FHA and VA follow their own rules. Set expectations before anyone writes an offer on the year-1 payment.
- Keep payments out of ads.A monthly payment or reduced rate in an ad requires full Truth in Lending disclosures. Agents should advertise the seller credit and send payment questions to the lender.
Loan officer to listing agent
Deal summary to share