Buyers care about their monthly payment as much as the rate itself. Temporary Rate Buydowns lower that payment early on, which makes a home easier to afford right when it matters most. AD Mortgage is enhancing its 50 bps Buydown Promo with a new Lender-Paid Rate Buydown option while extending the promotion through September. This gives Partners more flexibility to structure competitive purchase loans and helps borrowers benefit from lower initial payments.
More buyers are choosing this option every year. Fannie Mae reports that 7.19% of loans in a recent reference pool had temporary rate buydowns, up from about 2% in 2023. Want to help your client benefit from this useful feature? We can support you.
What are Lender-Paid Buydowns?
The Temporary Rate Buydowns can now be covered by lenders, as well as by sellers, builders, or third parties. This provides additional flexibility, allowing Partners to win more purchase deals thanks to favorable pricing.
What loans are eligible for Lender-Paid Buydowns?
- Channels: Wholesale, Non-Delegated, Correspondent Plus, and Delegated*
- Transactions: Purchases, Rate-and-Term Refinances
- Occupancy: Primary Residences & Second Homes
- Programs:
- Conventional Fixed (DU-eligible)
- Non-QM: 30-Year Fixed Apex Prime*, Super Prime, Prime
*Additional 50 bps Buydown Promo is not available on Full Delegated channel and Apex Prime.
How to Apply a Lender-Paid Rate Buydown
The Lender-Paid Rate Buydown option is available to Approved Partners in three steps:
- Log in to the AIM Partner Portal
- Create an eligible loan
- Select a Lender-Paid Buydown Plan in Products & Pricing
Not a Partner yet? Fill out the Broker Package today:
How Temporary Rate Buydowns Can Benefit Your Client
Temporary Rate Buydowns help borrowers lower their initial monthly payments. Your clients can negotiate one of the available buydown options – 1-0, 1-1, 2-1, and 3-2-1 – and achieve better pricing. With the additional 50 bps price incentive, the loan terms become even more attractive.
The extra 50 bps offer is available on eligible primary and second home purchases with the following programs: 30-Year Fixed Super Prime, Prime, AD Power Jumbo, and Fixed Conventional. Note that Lender-Paid Rate Buydown option is not available on AD Power Jumbo.
| Buydown Structure | Year 1 | Year 2 | Year 3 | Year 4+ |
|---|---|---|---|---|
| 1-0 | Note Rate - 1% | Full Note Rate | ||
| 1-1 | Note Rate - 1% | Note Rate - 1% | Full Note Rate | |
| 2-1 | Note Rate - 2% | Note Rate - 1% | Full Note Rate | |
| 3-2-1 | Note Rate - 3% | Note Rate - 2% | Note Rate - 1% | Full Note Rate |
How to Apply the Improved Pricing
Improved pricing is available to Approved Partners in three steps:
- Log in to the AIM Partner Portal
- Select an eligible Buydown Plan in Products & Pricing
- Lock an eligible purchase loan by September 30, 2026, and the 50-bps pricing incentive will be applied automatically
Not a Partner yet? Fill out the Broker Package today:
FAQ: Temporary Rate Buydowns
What are Lender-Paid Temporary Rate Buydowns?
Now Temporary Rate Buydowns on eligible loans can be funded by the lender, offering Partners additional flexibility in structuring the loan.
What Loans are Eligible for Lender-Paid Temporary Rate Buydowns?
Lender-Paid Temporary Rate Buydowns are available for purchase loans only on primary residences and second homes. Eligible programs include Conventional Fixed (DU-eligible), 30-Year Fixed Apex Prime (note that this program is not eligible for the extra 50 bps incentive), Super Prime, Prime. Available channels include Wholesale, Non-Delegated, Correspondent Plus, and Delegated.
What Channels are Available for Lender-Paid Temporary Rate Buydowns?
Wholesale, Non-Delegated, Correspondent Plus, and Full Delegated channels are available.
What Channels are Available for a Temporary Rate Buydown Price Improvement?
Wholesale, Non-Delegated, and Correspondent Plus channels are eligible for this price improvement.
Who Can Contribute to a Temporary Rate Buydown?
Sellers and third parties can now fund a temporary rate buydown. Beginning September 9, lender-paid buydowns will also be available.
What is the AD Mortgage Temporary Rate Buydown Enhancement Offer?
AD Mortgage provides an additional 50 bps on eligible purchase loans with temporary rate buydowns throughout September 2026.
What Loans are Eligible for a Temporary Rate Buydown Price Improvement?
Certain purchase Non-QM, Conventional, and AD Power Jumbo loans are eligible – find the list of eligible products and exclusions here. The offer is available across all business channels except Delegated.
Is the Temporary Rate Buydown Offer Limited in Time?
Yes. The additional 50 bps on eligible purchase loans with temporary rate buydowns is available through September 30, 2026. Lock an eligible loan in AIM by that date, and the pricing incentive will apply automatically.
