Buydowns Clause Samples
A buydown clause allows a borrower to reduce the interest rate on a loan, typically for an initial period, by paying an upfront fee or through a third-party contribution. In practice, this means the borrower or another party, such as a home seller or builder, pays a lump sum at closing to lower the interest rate for a set number of years, resulting in lower monthly payments during that time. The core function of this clause is to make loan payments more affordable in the early years of the loan, which can help borrowers qualify for financing or ease the transition into homeownership.
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Buydowns. Borrower may prepay a portion of the Warehousing Advances outstanding against Prime Mortgage Loans (a “Buydown”) upon Notice to Lender not later than (a) 1:00 p.m. on the Business Day immediately preceding the Business Day on which Borrower desires to make a Buydown in the amount of $10,000,000 or more or (b) 1:00 p.m. on the Business Day on which Borrower desires to make a Buydown in an amount less than $10,000,000. Each Buydown must be in an amount not less than $5,000, and Buydowns may not exceed the aggregate principal balance of the Warehousing Advances outstanding against Prime Mortgage Loans. A Buydown is a reduction in the aggregate amount of the Warehousing Advances outstanding against Prime Mortgage Loans, but does not represent the prepayment of any particular Warehousing Advance, and does not entitle Borrower to the release of any Collateral. Lender may apply Buydowns to reduce interest payable by Borrower on outstanding Warehousing Advances in any order that Lender determines in its sole discretion. Unless a Default or Event of Default exists, Borrower may reborrow all or any portion of a Buydown upon Notice to Lender not later than (m) 1:00 p.m. on the Business Day immediately preceding the Busines Day on which borrower desires to reborrow $10,000,000 or more or (n) 1:00 p.m. on the Business Day that Borrower desires to reborrow an amount less than $10,000,000. If Lender receives Buydowns or a combination of Buydowns and payments of Warehousing Advances that exceed the aggregate principal balance of the Warehousing Advances outstanding against Prime Mortgage Loans (an “Excess Buydown”), as long as no Default or Event of Default exists, Borrower may reborrow all or any portion of an Excess Buydown upon Notice to Lender not later than (y) 1:00 p.m. on the Business Day immediately preceding the Business Day on which Borrower desires to reborrow $10,000,000 or more or (z) 1:00 p.m. on the Business Day that Borrower desires to reborrow an amount less than $10,000,000. Alternatively, Lender may, in its sole discretion, re-advance to Borrower all or any portion of an Excess Buydown by causing the Funding Bank to credit the Operating Account in that amount. Lender has no obligation to pay or otherwise provide to Borrower any interest, dividends or other benefits on an Excess Buydown.
Buydowns. A temporary interest rate buydown not to exceed one-half of one percent for the first three years of the Mortgage is permitted. Borrower will be underwritten at the bought-down interest rate. The buydown must otherwise meet the requirements of the Guides, including the allowance for buydown funds to come from any source or combination of sources (including Lender, foundations, places of worship, labor unions, employers or their designees, public agencies and nonprofits).
Buydowns. Without limiting any other rights of Borrower to prepay amounts outstanding under the Revolving Credit contained herein, Borrower may, at its option, prepay all or part of the outstanding principal amounts outstanding under the Revolving Credit (including the Swing Line) at any time without reducing the Revolving Credit Aggregate Commitment (such prepayment individually a “Buydown” and collectively, “Buydowns”). Any Buydown made in accordance with this Section shall be without premium or penalty. Each Buydown shall be applied to repay outstanding Advances in the order and manner as determined by Agent and ▇▇▇▇▇▇▇▇. For the avoidance of doubt, a Buydown is a reduction in the aggregate principal balance of the Advances outstanding under this Agreement, but does not represent the prepayment of any particular Advance with respect to any Pledged Mortgage Loans and, accordingly, a Buydown shall not entitle Borrower to the release of any Pledged Mortgage Loans and Agent shall continue to hold all Pledged Mortgage Loans as security for the Indebtedness until such time as Agent releases its lien upon the sale of any such Pledged Mortgage Loan in accordance with the terms of this Agreement or the other Loan Documents. Borrower may request re-advances of all or a portion of the amount(s) of any Buydown(s) subject to all of the terms and conditions for Advances, other than those terms and conditions expressly excluded with respect to re-advances in Section 2.3 of this Agreement, of the Revolving Credit under this Agreement. 4854-1287-6893.v9
Buydowns o Seller shall provide Purchaser a listing in loan number order of all buydown accounts included in the Transfer . o Seller is to provide a copy of each buydown schedule for each mortgage loan. o All buydown balances must be fully funded and, at the time of transfer, the balance must be equal to the calculated balance of the buydown subsidy as detailed in each buydown schedule.
Buydowns. Borrower may prepay a portion of the Structured Facility Advances in an amount equal to $1,000,000 or an integral multiple $250,000 in excess thereof pursuant to this Section 3.4 (any such prepayment is hereafter referred to as a "Buydown"). A Buydown shall be deemed a prepayment of Structured Facility Advances as agreed between Borrower and Lender, but shall not entitle Borrower to the release of any Collateral. Borrower shall provide Lender 1 Business Day's advance notice of any Buydown. All or any portion of a Buydown may be reborrowed ("Buyup") in an amount equal to $1,000,000 or an integral multiple of $250,000 in excess thereof, upon written notice to Lender no later than 10:30 a.m. on any Business Day, provided no Default or Event of Default has occurred and is continuing and all other conditions precedent have been satisfied or waived. Lender Dated: 7/1/2003 Amended: 7/24/2003 shall withdraw each Buydown from Borrower's Operating Account by 12:00 noon on the day thereof. Each request for a Buydown or Buyup will be on the corporate letterhead of Borrower and no more than 2 Buydowns/Buyups will occur in any one-week period. In the event Lender receives a payment of Structured Facility Advances which would, as a result of the Buydown, reduce the outstanding principal balance of the Structured Facility Advances to an amount less than zero, a portion of the Buydown sufficient to eliminate such shortfall equal to $1,000,000 or an integral multiple of $250,000 in excess thereof, will be readvanced to Borrower. Lender may apply the Buydown to reduce the interest on Structured Facility Advances in such order as Lender, in its sole discretion, shall determine.
Buydowns. Borrowers may prepay a portion of the Warehousing Advances outstanding in an amount equal to at least $1,000,000 pursuant to this Section 3.4 (any such prepayment is hereafter referred to as a “Buydown”). A Buydown is a reduction in the aggregate amount of Warehousing Advances outstanding under this Agreement, but does not represent the prepayment of any particular Warehousing Advance, and does not entitle Borrowers to the release of any Collateral. All or any portion of a Buydown may be reborrowed (“Buyup”) in an amount equal to at least $1,000,000, provided no Default or Event of Default has occurred and is continuing and all other conditions precedent have been satisfied or waived. Credit Agent may apply Buydowns to reduce interest payable by Borrowers on outstanding Warehousing Advances in any order that Credit Agent determines in its sole discretion. Credit Agent will withdraw each Buydown from Borrowers’ Operating Account by 4:00 p.m. on the day thereof, and will distribute to each Lender its Percentage Share of the Buydown by wire transfer by 12:00 noon on the following Business Day. Each request for a Buydown or Buyup will be on the corporate letterhead of UAMC LLC. In the event Credit Agent receives a payment of Warehousing Advances that would, as a result of Buydowns by Borrowers, reduce the outstanding principal balance of the Warehousing Advances to an amount less than zero, a portion of the Buydowns sufficient to eliminate such shortfall, will be readvanced to Borrowers. Credit Agent will notify each Lender not later than 11:00 a.m. on the date of any Buyup or other readvance of a Buydown, and each Lender shall make its Percentage Share thereof available to Credit Agent in immediately available funds at the office of Credit Agent by 4:00 p.m. on the day of the request therefor.
Buydowns