Last reviewed 10-31-2026Short-Sale.com Editorialglossary

Significant Interest Rate Buydown

Fannie Mae

Updated 10-31-2026

Significant Interest Rate Buydown

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 · p. 45

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