Fnma Buydown

Concept of Fnma Buydown in the context of Real Property

A short definition of Fnma Buydown: FNMA ( Federal National Mortgage Association) accepts loans containing a buy down provision on single family residential, owner occupied properties. A prepayment (points) will buy a lower rate of interest during the first one to five years of the loan. Restrictions apply as to the amount of the buydown and rise in payment amount as the loan progresses.

Concept of Fnma Buydown in the context of Real Property

A short definition of Fnma Buydown: FNMA ( Federal National Mortgage Association) accepts loans containing a buy down provision on single family residential, owner occupied properties. A prepayment (points) will buy a lower rate of interest during the first one to five years of the loan. Restrictions apply as to the amount of the buydown and rise in payment amount as the loan progresses.