When buying a house with an FHA loan, sometimes people want to participate in a buydown program. The most popular buydown program is called a 2/1 buydown program. General Requirements for Mortgage Loans with Temporary Interest Rate Buydown Plans Borrower must qualify at the Note rate and not at the “bought down” rate. A temporary buydown may only be considered as a compensating factor. The buydown must adjust in no earlier than 12 month increments and be no greater than 1% per 12 … [Read more...]