When you are building a custom home, a rate buydown is a financing strategy that involves paying an additional upfront cost—often referred to as discount points—to secure a lower interest rate on your mortgage. This can be particularly beneficial when navigating the costs of new construction. Depending on your financial goals and lender options, we can help you coordinate one of two main types:

• Temporary Buydowns: These reduce your interest rate for a specific period, typically the first one to three years of the loan. This approach can help keep your monthly payments more manageable during the construction phase and early years of homeownership.
• Permanent Buydowns: This option lowers your interest rate for the entire duration of the loan term, providing long-term savings and stability.

We work closely with your lender to ensure these buydowns are integrated correctly into your financing structure, whether you are using a one-time close construction loan or a construction-to-permanent loan. By leveraging our design-build model, we provide the fixed schedules and documentation lenders need to finalize these details efficiently.

Let us help you get your project started. Please note that all loan terms, rates, and eligibility for buydowns are determined by your lender and are subject to credit profile and market conditions. All estimates we provide are preliminary and subject to change after a site inspection and a full scope review. Project outcomes and timelines may also vary based on site conditions, permitting, and material availability.

• Custom Home Builders with Financing: One-Time Close Loans Centennial