buydown definition

buydown

Financing arrangement in which a builder or seller lends money to a prospective home buyer for making a down payment on the property to a bank or other lender, and adds that amount to the selling price of the property. Buydown enables the buyer to qualify for a mortgage loan on the property at an advantageous rate of interest, and helps the builder in realizing a sale.

buydown is in the Real Estate & Buildings subject.

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