Seller Financing of Temporary Buydowns
A temporary buydown is one of many creative financing techniques which enjoyed growing popularity in the late 1970s and early 1980s. Under a typical temporary buydown, a homebuyer's mortgage payments during the early years of the mortgage are subsidized by the seller, who pays a portion of the mortgage payments that would otherwise be paid solely by the borrower. This arrangement is effected by the seller's funding an escrow account that is depleted as funds are used to supplement the payments made by the mortgagor to the lender.
|Date of creation:||Nov 1992|
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