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Lower Payments, More Buying Power: Free 1-0 Temporary Rate Buydown

In today’s market, affordability matters more than ever. Higher interest rates can stretch monthly budgets, but programs like our free new 1-0 Lender Paid Temporary Rate Buydown are creating opportunities for homebuyers to ease into homeownership with lower initial payments.

Here’s what you need to know about this limited-time financing option and how it can benefit borrowers purchasing a home in 2026.

## What Is a 1-0 Temporary Rate Buydown?

A 1-0 buydown temporarily reduces the borrower’s interest rate by 1% during the first year of the loan. That means a lower monthly payment for the first 12 months before the loan returns to the full note rate in year two.

The advantage? Borrowers gain more flexibility during the first year of homeownership when expenses are often the highest after moving, furnishing a home, or adjusting to new financial responsibilities.

Even better, we can help offset the cost with a lender-paid credit.

## Key Highlights of the Program

* We add a free lender credit to help cover the cost of the 1-0 buydown

* Available on purchase loans only

* Eligible on Conforming, FHA & VA loans

* Available for both fixed-rate and adjustable-rate mortgages

* * New locks eligible from May 6 through June 30, 2026

## Why Borrowers Like Temporary Buydowns

A temporary buydown can be a smart strategy for buyers who want immediate payment relief without committing to a permanent higher-cost financing structure.

Potential benefits include:

### Lower Initial Monthly Payments

Reducing the payment during the first year can improve monthly cash flow and reduce financial pressure after closing.

### Easier Transition Into Homeownership

Many buyers face upfront expenses like moving costs, furniture purchases, renovations, or emergency savings replenishment. A lower payment can provide breathing room during that transition.

### Increased Flexibility

Borrowers may choose to use monthly savings toward:

* Building reserves

* Paying down other debt

* Home improvements

* Investments or savings goals

## Who May Benefit Most?

This program may be ideal for:

* First-time homebuyers

* Buyers expecting future income growth

* Move-up buyers adjusting to a larger mortgage payment

* Borrowers looking for short-term affordability solutions

## Important Eligibility Notes

This program:

* Applies to purchase loans only

* Is available exclusively on agency products

* Includes fixed and ARM loan options

* Is not eligible with “Control Your Price”

Because guidelines and eligibility can vary based on the borrower scenario, it’s important to review the details carefully before locking.

## Final Thoughts

Temporary buydowns continue to be one of the most effective tools for improving affordability in today’s market. Our lender-paid 1-0 buydown creates an opportunity for qualified buyers to reduce their first-year payment while keeping more flexibility in their budget.

With the program available only on new locks through June 30, 2026, borrowers considering a home purchase may want to explore whether this strategy fits their financial goals.

For personalized guidance and a side-by-side comparison of loan options, reach out to discuss the best financing strategy for your situation.