Information for Single-Family Lending and Real Estate Professionals

Program Announcement

November 22, 2024
Changes to Permanent and Temporary Rate Buydown Requests-New Fees Effective January 2, 2025

Dear Lending Partners,

Many lenders have been requesting rate buydowns late in the process resulting in hedging challenges for the Commission.

Due to the expensive costs of pooling buydown loans with interest rate buydowns, we will be amending our current buydown policies.

The following changes are effective for loan reservations made on or after January 2, 2025.

Home Advantage and Covenant first mortgage programs:

Permanent rate buydown requests made within 2 business days from loan reservation, applicable buydown costs will apply.

Permanent rate buydown requests made after 2 business days from loan reservation will incur a 1% fee in addition to the applicable buydown costs.

Any temporary rate buydowns will incur a 0.50% fee.

A combination of a permanent and temporary rate buydown request will incur the above applicable fees.

House Key first mortgage program:

Any temporary rate buydown requests will incur a 0.50% fee.

Permanent rate buydown requests are not permitted for House Key.

What will this mean to me?

The lender will need to fully work the loan file before the loan reservation is made to avoid the additional fees as stated above.

As a reminder our downpayment funds cannot be used for any buydown costs.

Section 2 of our Home Advantage and House Key manuals will be updated as applicable.

If you have any questions, please contact Corinna.Obar@wshfc.org or 206-287-4414.