4601.1: Eligible Financed Permanent Buydown Mortgages (11/05/18)

Owned by Marsha Freeman
Last updated: Nov 20, 2018
1 min read

© Freddie Mac Single-Family Seller Servicer Guide

Financed Permanent Buydown Mortgages must have the following characteristics:

  • The Mortgage must be an eligible fixed-rate, level payment Mortgage, or a 5/5, 5/1, 7/1 or 10/1 ARM
  • The Mortgage must not be an A-minus Mortgage
  • The Mortgage must not be a Home Possible® Mortgage
  • The Mortgage must not be an Affordable Merit Rate® Mortgage
  • The Mortgage must not be an FHA Mortgage, a VA Mortgage, a Section 502 GRH Mortgage, or a Section 184 Native American Mortgage
  • The Mortgage must not be a Freddie Mac HomeOneSM Mortgage
  • The Mortgage must not be a Community Land Trust Mortgage
  • The Mortgage must not be secured by property subject to income-based resale restrictions that terminate upon foreclosure (or expiration of any applicable redemption period) or recordation of a deed-in-lieu of foreclosure, where the property value must be determined in accordance with Section 4406.1(g)(ii)
  • Temporary subsidy buydowns are not permitted