CBC Mortgage Agency (CBCMA), a Native American wholly owned and federally chartered housing finance agency, has unveiled a buydown feature for its down payment assistance program for FHA first mortgage financing.
According to the South Jordan, Utah-based CBCMA, the new feature functions as either a 2-1 buydown or a 1-0 buydown, lowering the interest in the first years of homeownership. CBCMA said this makes a “significant difference in helping borrowers purchase a home if they can make the payments once the interest rate increases.”
The new feature comes shortly after the company decreased the interest rate offered on its down payment assistance to minimize the impact of high first mortgage rates and high home prices on low-to-moderate borrowers.
“The addition of a 2-1 and a 1-0 buydown feature is CBC Mortgage Agency’s continued response to the ongoing effect of the higher interest rates,” said Cari Zwick, national program director. “We’ve had a lot of requests for a buydown feature, and we hope it provides some relief to buyers during the current state of the housing market.”
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