Significant Interest Rate Buydown
Last updated 2026-08-01
Fannie Mae
Updated 2026-08-01
A temporary reduction in the initial interest rate of a mortgage loan that provides for either more than a 2% difference between the actual interest rate as stated in the note and the “bought-down” interest rate, or a buydown period greater than two years. Fannie Mae restricts the percentage of an MBS pool that can be comprised of mortgages with this type of buydown. Requires SFC 014 at delivery.
Fannie Mae Glossary of Terms
Fannie Mae · pp. 43–45
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