Introduction

If you’ve been waiting for mortgage rates to improve before buying a home, there’s good news. A new temporary rate buydown program from UWM could help buyers lower their monthly payment during the first year of their mortgage without added cost to the buyer. For a limited time, UWM is covering the cost of lender-paid temporary rate buydowns on eligible conventional and government purchase loans. That means qualified homebuyers may be able to enjoy a payment based on an interest rate that’s 1% lower during the first year of the loan.

What Is a 1-0 Buydown?

A 1-0 buydown is a temporary interest rate reduction for the first year of your mortgage. Here’s how it works: Year 1: Your rate is reduced by 1% Year 2 and beyond: Your loan returns to the full note rate For example, if your locked interest rate is 6.5%, your payment in the first year would be calculated as if your rate were 5.5%. That lower payment can: Reduce financial stress during your first year as a homeowner, Help buyers ease into homeownership expenses, Create more flexibility for moving costs, furnishing a home, or savings, Potentially improve affordability in today’s market

Why This Matters for Buyers

Many buyers are still financially qualified to purchase a home, but monthly payment concerns have caused them to pause their search. This program helps bridge that gap by reducing the initial payment burden without requiring additional money from the borrower. Unlike some seller-paid incentives, this option is being offset directly through lender credits provided by UWM.

Program Highlights

Here are some key details of the promotion: UWM will provide a credit to offset the cost of the 1-0 buydown, Available on eligible conventional and government purchase loans, Applies to both fixed-rate and adjustable-rate mortgages, Available on new locks from May 6 through June 30, 2026

Who Could Benefit Most?

This program may be especially helpful for: First-time homebuyers, Veterans using VA financing, FHA buyers looking to maximize affordability, Buyers relocating or purchasing after renting, Anyone expecting future income growth or future rate refinance opportunities

Is Now the Right Time to Buy?

Trying to perfectly “time” the market is difficult. The reality is that when rates eventually drop significantly, competition often increases — meaning more bidding wars and rising home prices. Programs like this can help buyers move forward now while still getting temporary payment relief upfront. If you’ve been thinking about buying but felt unsure about the monthly payment, this could be an opportunity worth exploring.

Let’s See What You Qualify For

Every buyer’s situation is different, and not every loan or property will qualify for this program. The best way to find out what your options look like is to run the numbers based on your goals and budget. As a Marine Corps veteran and mortgage loan officer, I work with buyers across multiple loan programs including VA, FHA, conventional, and first-time homebuyer options. If you’d like to explore whether this temporary buydown could help you purchase a home with a more comfortable payment, reach out today and let’s build a strategy that works for you.