HomeTermsCompareFinance FNMA BuydownThe definition for FNMA Buydown:FNMA (Federal National Mortgage Association) accepts loans containing a buy down provision on single family residential, owner occupied properties. A prepayment (points) will buy a lower rate of interest during the first one to five years of the loan. Restrictions apply as to the amount of the buydown and rise in payment amount as the loan progresses. Similar MatchesBuydownBuydownA payment to the lender from the seller, buyer, third party, or some combination of these, causing the lender to reduce the interest rate during the early years of a loan. The buydown is usually for the first 1 to 5 years of the loan. Click to compare definitions of FNMA Buydown Click to view definitions beginning fn |