Texas Interest Rate Buydown Mortgage Loans

Lower your mortgage payment at the beginning of your loan with a temporary buydown designed for Texas homebuyers. This program can reduce your rate for the early years of your mortgage while keeping your long-term financing on a fixed-rate conventional loan.

Our 1-0 buydown lowers the rate by 1%¹ for the first year, helping create more room in your budget during the transition into homeownership.

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Texas Interest Rate Buydown Mortgage Requirements and Features

A Texas buydown mortgage can lower your payment at the beginning of the loan term, but the structure of the program matters. Review how the 1-0 buydown works, what loan types are eligible, how qualification is measured, and where temporary buydown funds may come from.

When a Texas Buydown Mortgage May Make Sense

A temporary buydown can help if your first year of homeownership comes with extra costs besides your mortgage. It lowers your payments at first, then moves up to the regular fixed rate later on.

You want extra room in your budget after closing
Lower payments in the first year can make it easier to cover moving costs, repairs, new furniture, appliances, or other early home expenses.
You are buying a primary residence or second home with conventional financing
This program is designed for eligible fixed-rate conventional purchase loans, not for refinancing or government-backed loans.
You want a lower starting payment but can still qualify for the full payment later
Since you qualify based on the regular payment with the permanent loan rate, this option works well if you want lower payments at first but can handle the full amount later.
You want future refinance flexibility if rates improve
A temporary buydown gives you savings early on and lets you refinance later if rates get better.

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Lower Payments in Year One

A 1-0 buydown lowers the rate by 1% in year one, giving you a lower starting payment as you settle into your new home.

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Built for Early Homeownership Costs

A buydown can help free up cash flow for repairs, appliances, furniture, and expenses that often show up right after closing.

Conventional Purchase Loans for Primary and Second Homes

A buydown is vailable on eligible fixed-rate conventional purchase loans for primary residences and second homes.

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Qualification Uses the Full Note Rate

Qualify based on the permanent, not the temporarily reduced, loan rate, ensuring the loan still fits after the buydown period ends.

Lets Crunch The Numbers

Multiple Temporary Buydown Structures

Beyond 1-0 buydowns, some borrowers also compare 2-1 and 3-2-1 buydowns, depending on how the funds are arranged.

See if it Fits

Refinance Flexibility Later

If rates drop before the buydown term ends, remaining buydown funds may be applied to your refinanced loan balance.

Get Started

NMLS #576560 Credit Union of Texas provides mortgage loans through its affiliate Texas Mortgage Lending, LLC, NMLS #1641703. CUTX home loan programs are only available in Texas. Loans are subject to credit approval, CUTX’s lending policies, and property approval. Traditional closing costs apply. Additional terms and conditions may apply. Prequalification is not a commitment to lend. Membership required.

¹ Advertised program is valid as of November 1, 2022 and subject to change without notice. The Interest Rate Buydown Mortgage offer will effectively reduce the interest rate by 1% for the first year of the mortgage. A custodial escrow account will be funded by the lender-paid credit, up to a maximum amount of $6,500, and funds will be dispersed from the escrow account towards each monthly payment to account for the difference in interest during buydown period. Offer valid on fixed-rate conventional purchase money loans for primary residences and second homes eligible through Fannie Mae and Freddie Mac. Offer not valid on Refinance loans or CUTX portfolio programs (Jumbo, Fast Lane Mortgage, 95% No PMI Program), Home Equity, Second Liens, Investment Property, FHA, VA or ARM products, and cannot be combined with any other discounts or promotions. Offer may not be redeemed for cash or credit and is nontransferable. Offer cannot be retroactively applied to any previously closed loans or loans already in process and is subject to changes or cancellation at any time at the sole discretion of CUTX. Additional restrictions/conditions may apply. Member must lock initial rate between 30 and 90 days from the purchase closing date. This is not a commitment to lend and is contingent on qualification per full underwriting guidelines.

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