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How Does a 2-1 Buydown Work?

Q: Are the 4.50%, 5.50% and 6.50% figures today's mortgage rates?

No. These are hypothetical figures used solely to illustrate the concept of a temporary 2-1 buydown. They are not current mortgage rates, advertised available rates, an APR, a rate quote, an offer of credit or a commitment to lend.

A temporary 2-1 buydown can reduce the amount of the scheduled mortgage payment the borrower is responsible for during the first two years. Here's a simple educational example of how the payment calculation works.

ILLUSTRATIVE EXAMPLE ONLY — NOT TODAY'S RATE

Hypothetical Example Assume, solely for illustration, a full note interest rate of: 6.50%

YEAR 1

4.50%

2 Percentage Points Lower

For illustration, the borrower's scheduled payment during Year 1 is calculated using a rate 2 percentage points below the hypothetical 6.50% note rate.

YEAR 2

5.50%

1 Percentage Point Lower

For illustration, the borrower's scheduled payment during Year 2 is calculated using a rate 1 percentage point below the hypothetical 6.50% note rate.

YEAR 3+

6.50%

Example Full Note Rate

Beginning in Year 3, the scheduled payment in this illustration is calculated using the hypothetical full 6.50% note rate.

YEAR 1 → YEAR 2 → YEAR 3+

IMPORTANT — HYPOTHETICAL EXAMPLE ONLY

The 4.50%, 5.50% and 6.50% figures shown above are used solely as a simplified educational illustration of how a temporary 2-1 buydown may affect scheduled payments.

These figures are NOT today's mortgage rates, are NOT advertised available rates, and are NOT an APR, rate quote, loan offer or commitment to lend.

The example does not represent a specific mortgage product being offered by Jesse Piña, PinaHomes, JohnHart Real Estate or any particular lender.

Actual interest rates, APR, payments, closing costs, credit terms, qualification requirements and loan program availability depend on the borrower, property, lender, loan program and market conditions.

For actual current mortgage rates, APR and loan terms, consult a licensed mortgage lender or mortgage loan originator.

Could a seller help fund a temporary 2-1 buydown?

Potentially.

Depending on the purchase agreement, loan program, lender requirements and applicable seller-contribution limits, an eligible seller concession may be used to fund a temporary buydown.

A temporary buydown generally does not permanently change the mortgage note rate. Instead, funds are applied according to the approved buydown arrangement to reduce the amount of the scheduled payment the borrower is responsible for during the temporary buydown period.

Eligibility and structure must be confirmed by the buyer's mortgage professional.

SEE WHAT I MAY QUALIFY FOR →

🏡 California Home Buyers

Can You Buy a Home With No Money Down?

You may have more home-buying options than you realize. Explore zero-down, low-down-payment, down-payment-assistance and payment-reduction strategies that may be available to qualified California home buyers.

SEE WHAT I MAY QUALIFY FOR → SEARCH HOMES

Program eligibility varies • English & Spanish

✓ 21+ Years Experience

✓ Buyer Representation

✓ English & Spanish

✓ Southern California

THE SHORT ANSWER

Is It Really Possible to Buy a Home With No Money Down?

For some qualified buyers, yes. The right option depends on your finances, the property, its location and the mortgage program for which you qualify.

Yes — but not every buyer or property will qualify.

Some mortgage programs may allow eligible borrowers to purchase with no traditional down payment. Other buyers may qualify for low-down-payment financing or down-payment-assistance programs that can reduce the amount of cash needed to purchase a home. A licensed mortgage professional can determine which programs are currently available and whether you qualify.

EXPLORE YOUR OPTIONS

Ways Buyers May Reduce Their Upfront Costs

There isn't one solution for every buyer. These are several home-financing possibilities worth discussing with a qualified mortgage professional.

🇺🇸

VA Financing

Eligible veterans, active-duty service members and certain surviving spouses may have access to VA financing that can allow a purchase with no required down payment, subject to VA and lender requirements.

🏡

USDA Financing

Eligible buyers purchasing qualifying properties in eligible areas may be able to use USDA financing with no required down payment, subject to income, property and program requirements.

💰

Down Payment Assistance

Some qualified buyers may have access to assistance programs designed to help with a down payment and/or eligible closing costs. Program availability and requirements vary.

🔑

Low Down Payment Loans

Even when zero-down financing isn't available, qualified buyers may have access to mortgage programs requiring a relatively small down payment.

🤝

Seller Concessions

Depending on the transaction and financing guidelines, a seller may agree to contribute toward certain allowable buyer closing costs.

📉

Temporary 2-1 Buydown

A temporary 2-1 buydown may reduce the amount of the scheduled payment the borrower is responsible for during the first two years. Availability and structure depend on the mortgage program and lender requirements.

Important: "No money down" does not necessarily mean "no money out of pocket." A transaction may still involve closing costs, prepaid expenses, inspections, appraisal expenses, reserves or other costs depending on the financing and transaction.

GET STARTED

Your Path to Homeownership

Before assuming you need a large down payment, find out which options may actually be available to you.

Talk With Jesse

Learn more about Jesse Piña, REALTOR® and discuss where you want to buy.

Review Financing

Start with the Get Pre-Approved page and review financing with a licensed mortgage professional.

Search Homes

Use the PinaHomes property search to explore available homes.

Write the Offer

We'll structure an offer based on the property, market conditions and your financing.

Don't Assume You Need a Huge Down Payment.

Let's find out what may be possible before you rule yourself out of buying a home.

CHECK MY OPTIONS → SEARCH HOMES → CALL JESSE: 626-488-9887

SERVICIO EN ESPAÑOL

¿Se Puede Comprar Casa Sin Dar un Gran Enganche?

Para algunos compradores que califican, existen programas que pueden permitir comprar una casa con poco o incluso ningún enganche tradicional.

También pueden existir programas de ayuda para el enganche, opciones para reducir ciertos costos iniciales y estrategias de financiamiento que un profesional hipotecario puede explicar.

La disponibilidad depende del comprador, la propiedad, el área, el tipo de préstamo y los requisitos del programa.

Hablo español y puedo ayudarte durante el proceso de compra de tu casa.

VER PARA QUÉ PODRÍA CALIFICAR →

BUSCAR CASAS →

📲 LLAMA A JESSE — 626-488-9887

EXPLORE PINAHOMES

Helpful Resources for California Home Buyers

Continue your home search, learn more about the buying process, explore local communities or connect directly with Jesse Piña.

🔎 Search Homes Search available homes and explore properties that match your goals. ✅ Get Pre-Approved Take the next step toward understanding your home-buying options. 🏡 Glendora Homes for Sale Explore homes and real estate opportunities in Glendora, California. 📍 Search Homes by City Explore communities and homes throughout Southern California. 👤 Meet Jesse Piña Learn about Jesse's real estate experience, services and local market knowledge. 🔑 Buying a Home Learn more about the home-buying process and what to expect. 📊 Home Value Already own a home? Explore your property's estimated market value. 🏠 PinaHomes Visit the PinaHomes home page for buyer, seller and local real estate resources.

BUYER QUESTIONS

Frequently Asked Questions

What is a temporary 2-1 buydown?

A temporary 2-1 buydown is an arrangement that reduces the amount of the scheduled mortgage payment the borrower is responsible for during the first two years. The exact structure, eligibility, funding and mortgage terms must be determined by the lender and applicable loan program.

Are the 4.50%, 5.50% and 6.50% figures today's mortgage rates?

No. Those figures are hypothetical numbers used only to illustrate the basic concept of a temporary 2-1 buydown. They are not current mortgage rates, advertised available rates, an APR, a rate quote, an offer of credit or a commitment to lend. A licensed mortgage professional can provide current interest rates, APR and actual loan terms.

Can a seller help fund a temporary 2-1 buydown?

Potentially. Depending on the transaction, purchase agreement, loan program, lender requirements and applicable seller-contribution limits, an eligible seller concession may be used to fund a temporary buydown.

Can I really buy a house with zero down?

Some qualified borrowers may be eligible for financing that does not require a traditional down payment. Certain VA and USDA loans are examples. Borrower and property eligibility requirements apply.

Does zero down mean I need no money at all?

No. A zero-down-payment mortgage does not automatically eliminate closing costs, prepaid expenses, inspections, appraisal costs, reserves or other transaction expenses.

Can the seller help with my closing costs?

Seller concessions may be permitted depending on the transaction, loan program and applicable contribution limits.

Do I have to be a first-time home buyer?

Not necessarily. Requirements vary by loan and assistance program. Some programs are designed for first-time buyers while others may also be available to repeat buyers.

What if I don't qualify for a zero-down program?

Qualified buyers may have other options, including low-down-payment mortgage programs or down-payment-assistance programs. You can also search available homes while discussing financing options with a licensed mortgage professional.

Do you help Spanish-speaking home buyers?

Yes. Jesse Piña provides bilingual English and Spanish real estate services to home buyers throughout Southern California.

YOUR LOCAL REAL ESTATE RESOURCE

Ready to Find Out What's Possible?

Your first step doesn't have to be finding the perfect house. It can simply be finding out which home-buying options may be available to you.

Jesse Piña, REALTOR®

Founder of PinaHomes

JohnHart Real Estate

California DRE #01722627

Bilingual • English & Spanish

GET PRE-APPROVED SEARCH HOMES GLENDORA HOMES 626-488-9887

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