Temporary Buydowns: A Smart Tool for Builders to Drive Sales

Offering 3-2-1, 2-1, 1-1, and 1-0 temporary mortgage buydowns.

As a home builder, you know how critical affordability is to closing sales and moving inventory. Mutual of Omaha Mortgage’s Temporary Buydown program offers you a powerful way to make homeownership more attainable for your buyers—while giving you a competitive edge in the market.

What is a Temporary Buydown?

A temporary buydown reduces the homebuyer’s mortgage payments for the first one to three years of their loan. By subsidizing a portion of the interest rate upfront, buyers enjoy lower monthly payments during the early years of homeownership. It’s an attractive option for buyers easing into their new financial responsibilities, making it easier to say “yes” to their dream home.

Why Offer Temporary Buydowns to Your Buyers?

Increase Affordability: Temporary buydowns can reduce monthly payments significantly, making homes more affordable for buyers in the short term.
Enhance Buyer Confidence: With lower payments early on, buyers can adjust to their new financial obligations without stretching their budgets too thin.
Move Inventory Faster: Buyers are more likely to choose a home with added financial incentives, helping you sell properties more quickly.
Pair with Other Incentives: Combine the buydown program with other builder-offered perks, such as closing cost assistance or design upgrades, to maximize buyer appeal.

How It Works

When a buyer opts for a temporary buydown, you or another interested party, like a seller or lender, can cover the upfront cost. This funding goes into an escrow account to subsidize the reduced interest payments for the designated time period. Once the buydown period ends, the buyer assumes the standard monthly payment for the remainder of the loan term.

For example:

- A 3-2-1 Buydown reduces the interest rate by 3% in the first year, 2% in the second, and 1% in the third.
- A 2-1 Buydown reduces the rate by 2% in the first year and 1% in the second.

Let's get started

Chat with a member of our team about partnership opportunities.

First Name(Required)

Last Name(Required)

Email(Required)

Phone(Required)

Company Name(Required)

By submitting your contact information, you are providing your signature and agreeing to our Terms of Use and our Privacy Policy. You are also signing express consent to having Mutual of Omaha Mortgage, Inc., or representatives from our family of companies, contact you about your inquiry via text message, email address, or phone (even if it is a cellular phone number or other paid service for which the called or messages person(s) could be charged for such call or text) to the residential or cellular telephone number or email you have provided. This contact may include automatic telephone dialing system or an artificial or prerecorded voice or message. Message frequency varies and data rates may apply. You expressly consent to Mutual of Omaha Mortgage to contact you via any means made to any telephone number you provide, even if your telephone number is currently listed on any do not contact email list, internal, corporate, state or national Do Not Call Registry list. Consent is not required as a condition of utilizing Mutual of Omaha Mortgage’s services. You may opt out of receiving calls or other electronic communications at any time by making a Do Not Call Request.

Let’s Build Success Together

Temporary Buydowns can make a world of difference for your buyers—and your bottom line. Ready to learn more about how this program can work for your community? Contact Mutual of Omaha Mortgage today to discuss how we can help you offer affordability, flexibility, and a smoother path to homeownership.

Why Choose Us for Your Builder Partnership?

We’re more than a lender—we’re your partner in helping buyers achieve their dream of homeownership. Our team will work closely with you to customize financing solutions that meet your needs and enhance your buyers’ experiences. Our Temporary Buydown program is just one of the many tools we provide to help you drive sales and succeed in a competitive market.