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Scott Buehler is a Temporary Buydown Lender!

See how a temporary buydown, including Jumbo, can help make payments easier.

Did You Know? In today's market, that won't last forever, temporary buydowns are extremely popular with most of my clients! As homes stay on the market longer, home sellers are offering incentives for you to purchase their home, including seller-paid closing costs!

As your temporary buydown lender, I will work closely with your real estate agent to provide the exact seller-paid closing costs needed to close your loan with this program. I also offer 3-2-1, 2-1 and 1,0 configurations (explained below) depending on the amount of costs you receive from the seller.

Scott Buehler and his team would love to assist you with a temporary buydown home purchase! When you are ready to get pre-approved and shopping for homes, take a moment to fill out this brief questionnaire or call (435) 590-1019.

A 2-1 Temporary Buydown Benefit Demonstration

Looking for a Jumbo temporary buydown mortgage option? Scott Buehler now has a 2-1 Temporary Buydown mortgage for loans over the conventional conforming limits. For more information, ask me about this option for more details today!

I highly recommend watching the video I've created above to see the math behind a temporary buydown. Once you see the numbers, you'll see why this program is a popular choice with most of my clients that are purchasing a primary residence or second home.

Temporary Buydown Home Loan Advantages

Unlike a permanent buydown to buy down your interest rate, there's key advantages to a temporary buydown that you should be aware of!

  1. The temporary buydown cost will typically come from the seller.
  2. Temporary buydown costs will sit in a separate account which is used to make your mortgage payment whole each month. Should you refinance, any unused portion of these funds will apply directly to your mortgage principal, further reducing your payment.
  3. Lower interest rate for the first 3, 2 or 1 years of your purchase, resulting in a lower payment at the beginning of your mortgage. This could be helpful if you need funds to buy furniture, renovate or to turn your new house into home.
  4. Use a temporary buydown with conventional (Fannie Mae or Freddie Mac), FHA, VA, USDA, or Jumbo. With USDA and Jumbo, only the 2-1 temporary buydown and 1-0 temporary buydown options are available.
  5. Refinance with ease. Guild Mortgage would be your loan servicer which offers certain advantages when going through the refinance process. You may also be eligible to have the mortgage fees waived on your refinance with Guild Mortgage's Homebuyer Payment Protection Program.

Did you know? In order for this program to work, you need a temporary buydown lender that will work closely with your real estate agent so that the right amount of seller-paid closing costs is included in your purchase contract. Scott Buehler is extremely experienced in temporary buydowns and can get the minimum seller-paid closing costs figures within seconds using his custom-built calculator.

3-2-1, 2-1 and 1-0 Temporary Buydown Explained

If you are wondering what the difference is between the 3-2-1, 2-1 and 1-0 temporary buydown, you are not alone. In this section, I'll explain the differences, pros and cons of each option.

For each option, be sure to understand that it is based on the note rate, meaning, the qualifying rate of your mortgage after the temporary buydown ends. In this example, and strictly for illustration purposes only, I will be using a 6.5% interest rate. Please understand that this is not a quote of your interest rate, but a made-up number to help show you how each program works.

  • 3-2-1 Temporary Buydown: Using this program, you will see a 3% reduction on your interest rate for the first year, a 2% reduction on your interest rate for the second year and finally, a 1% reduction on interest rate for the third year. If your interest rate was 6.5%:
    • Year 1: Payments based on a 3.5% interest rate.
    • Year 2: Payments based on a 4.5% interest rate.
    • Year 3: Payments based on a 5.5% interest rate.
    • Years 4-30: End of the temporary buydown. Your 6.5% note rate would apply.
  • 2-1 Temporary Buydown: Using this program, you will see a 2% reduction on your interest rate for the first year and a 1% reduction on your interest rate for the second year. If your interest rate was 6.5%:
    • Year 1: Payments based on a 4.5% interest rate.
    • Year 2: Payments based on a 5.5% interest rate.
    • Years 3-30: End of the temporary buydown. Your 6.5% note rate would apply.
  • 1-0 Temporary Buydown: Using this program, you will see a 1% reduction on your interest rate for the first year. If your interest rate was 6.5%:
    • Year 1: Payments based on a 5.5% interest rate.
    • Years 2-30: End of the temporary buydown. Your 6.5% note rate would apply.

Wouldn't I automatically default to the 3-2-1 temporary buydown?

No. In fact, most utilize a 2-1 temporary buydown because of the up-front cost of pre-paid interest. When going for the 3-2-1 option, the amount of pre-paid interest is often too pricey to ask for a home seller to cover.

As your experienced temporary buydown lender, Scott recommends the 3-2-1 temporary buydown option when working with new construction builders who can price in the cost to help benefit you, their buyer, with lower payments for the first three years.

When a seller will not negotiate to cover the 2-1 temporary buydown, the 1-0 temporary buydown will likely work as the pre-paid interest cost is much less than the other options.

Jumbo Temporary Buydown Lender

A jumbo temporary buydown is a mortgage financing option that allows a borrower to temporarily reduce the interest rate on a mortgage that is over the current conforming limit.

For those that qualify, get a jumbo temporary buydown mortgage for those that will:

  • Occupy the home as their primary residence.
  • Buy a single-family residence, condo or townhome.
  • Provide 20% down payment up to $2,000,000 loan with a 720+ credit score.
  • Provide 10% down payment up to $900,000 with a 710+ credit score.
  • Receive a gift, with options available.

Certain restrictions apply. Please talk to Scott Buehler to learn more about this program to see if you will qualify.

Is a Temporary Buydown Right for Me?

With Scott Buehler as your preferred temporary buydown lender, you will receive a Total Cost Analysis that breaks down the monthly payments using this program. It really helps to see the numbers specific to you, your available interest rate, your home purchase goals and what a refinance might look like.

If a temporary buydown sounds amazing for you, please contact Scott today or click the button below to fill out a quick questionnaire. Scott Buehler or a member of his pre-approval team will be in touch with you shortly, usually within 30 minutes (sometimes in seconds).

Disclaimer: Loan terms and limits subject to change. This page is meant for educational purposes and is not a commitment to lend. To qualify for a home loan, please speak to Scott Buehler or apply online.

Is a Temporary Buydown Loan Right For You? Tap Below!

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