Financed Permanent Buydown Mortgages must have the following characteristics:
- The Mortgage must be an eligible fixed-rate, level payment Mortgage, a 5/1 ARM; a 7/1 ARM or a 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
- Temporary subsidy buydowns are not permitted
Additional Resource: https://www.allregs.com/tpl/Viewform.aspx?formid=00051759&formtype=agency#page=201