You may be able to structure the transaction so that the SELLER funds the Buydown.
The cost for the Seller in this scenario is $3,644.
Purchase Price: $175,000
Down Payment: $6,125.00
Amount Financed: $168,875.00
Monthly Payments:(Principal & Interest ONLY)
Year 1 3.5% Interest rate: $758.33/monthly payment and SAVINGS: $200.52/month
Year 2 4.5% Interest rate: $855.67/monthly payment and SAVINGS: $103.18/month
Year 3+5.5% Interest rate: $958.85
This helps you to ease into homeownership and the lower initial monthly payments allow extra cash for you to furnish your new home.
Calculate rate & savings:
Yes, you can use the tax credit towards additional down payment or interest buydown. Unfortunately, banks have not decided how to handle this development and are currently not doing it. This was confirmed by a BofA Account Manager on Monday afternoon. Unless anything's changed in the past two days you'll have little luck getting the credit during the transaction. Wells, Chase, etc. follow BofA on these issues so they're likely not allowing the credit either. If anyone knows of someone who's gotten this done please let us know how!
E Mortgage Management
800.793.9633 ext. 156