Buydown Agreement Clause Samples
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Buydown Agreement. The Buydown Agreement provides for the payment by the Mortgagor of the full amount of the Monthly Payment on any Due Date that the Buydown Funds are available. The Buydown Funds were not used to reduce the original principal balance of the Mortgage Loan or to increase the Appraised Value of the Mortgage Property when calculating the Loan-to-Value Ratios for purposes of the Agreement and, if the Buydown Funds were provided by the Company and if required under ▇▇▇▇▇▇ Mae or ▇▇▇▇▇▇▇ Mac guidelines, the terms of the Buydown Agreement were disclosed to the appraiser of the Mortgaged Property;
Buydown Agreement. An agreement between the Company and a Mortgagor, or an agreement among the Company, a Mortgagor and a seller of a Mortgaged Property or a third party with respect to a Mortgage Loan which provides for the application of Buydown Funds.
Buydown Agreement. Buydown Agreement Percent --------------------------- N 100.00% --------------------------- Total: 100.00% --------------------------- --------------------------------------------------------------------------------
Buydown Agreement. An agreement between a Person and a Mortgagor pursuant to which such Person has provided a Buydown Fund.
Buydown Agreement. The borrower must agree in writing that the buydown funds in the buydown account will be automatically applied each month to reduce the monthly payment of principal and interest to the extent provided under the subsidy buydown agreement. The buydown agreement must provide for all of the following: • Must be a written agreement between the party providing the buydown funds and the borrower; • Must provide that the borrower is not relieved of their obligation to make the mortgage payments required by the terms of the mortgage note if, for any reason, the buydown funds are not available; • May include an option for the buydown funds to be returned to the borrower or to the Company, if it funded the buydown, if the mortgage is paid off before all of the funds have been applied; • The executed agreement, must be included in the file and must clearly show the calculations of the total cost of the temporary subsidy buydown, any interested party contribution and the annual percentage increase in the borrower's monthly principal and interest payment; and • All of the terms of the buydown plan must be disclosed to all parties, including the mortgage insurer, and the property appraiser.
Buydown Agreement. An agreement between a Person and a Mortgagor pursuant to which such Person has provided a Buydown Fund. Buydown Fund: A fund provided by the originator of a Mortgage Loan or another Person with respect to a Buydown Loan which provides an amount sufficient to subsidize regularly scheduled principal and interest payments due on such Buydown Loan for a period. Buydown Funds may be (i) funded at the par values of future payment subsidies, or (ii) funded in an amount less than the par values of future payment subsidies, and determined by discounting such par values in accordance with interest accruing on such amounts, in which event they will be deposited in an account bearing interest. Buydown Funds may be held in a separate Buydown Fund Account or may be held in a Custodial Account for P&I or a Custodial Account for Reserves and monitored by a Servicer.