CBC Mortgage Agency (CBCMA), a Native American wholly owned and federally chartered housing finance agency, is introducing a buydown feature for its down payment assistance (DPA) program for FHA first mortgage financing.
This new feature comes a few weeks 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.
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.
“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,” said Cari Zwick, National Program Director. “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.”
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