Can the seller buy down the VA rate?
A seller may be able to fund a temporary or permanent rate buydown when the lender and VA rules permit it. Do not assume every buydown or discount point belongs in the 4% seller-concession bucket; ordinary closing costs and seller concessions are treated differently.
What this actually means.
A temporary buydown uses seller-funded money to reduce the borrower's payment for a limited period before it returns to the note payment. A permanent buydown uses discount points to reduce the note rate. The lender must classify the actual charges and seller contributions correctly because normal closing-cost credits and VA seller concessions are not interchangeable. Compare the price, credits, note rate, future payment and expected timeline before choosing either structure. Subject to VA and lender guidelines.
Where this can move.
Credit score, loan amount, LTV, points, lender credits, lock timing, and market movement can change the rate quoted. The funding fee adds to APR.
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More VA questions on Rates.
Educational only. VA guidelines, lender overlays, rates, fees, and underwriting requirements can change. Final eligibility depends on full underwriting review. Mortgage Expert, Inc. is not affiliated with the VA, HUD, or any government agency.