The calendar doesn’t lie. June 30 is coming fast, and with it, the expiration of a genuine opportunity that most Virginia homebuyers will never hear about from a big-box lender: a free one-year temporary mortgage buydown that reduces your effective interest rate by a full percentage point in Year 1, at zero cost to you.
If you’re buying a home in Richmond, Henrico, Chesterfield, Short Pump, Glen Allen, Fredericksburg, or anywhere across Virginia, Florida, Tennessee, or Georgia, this guide walks you through exactly how to claim it before the deadline. No guesswork. No jargon. Just the math, the mechanics, and the steps.
Here’s what makes this worth your attention: a lower payment in Year 1 isn’t just a nice-to-have. For many buyers, it’s the difference between comfortably affording a home and feeling stretched thin during the adjustment period. This offer converts that breathing room into a real dollar figure, and this guide will show you exactly what that number looks like for your loan size.
We’ll cover what a temporary buydown actually is, how the math works in detail, what loan programs qualify, how to check your eligibility without touching your credit score, and how ShopMortgageRates.com compares to the local and national lenders you’ve probably already been researching.
Five steps. Real numbers. A hard deadline of June 30. Let’s get into it.
Step 1: Understand Exactly What a 1-0 Temporary Buydown Is (And What It Is Not)
A temporary buydown is a financing mechanism that reduces a borrower’s effective mortgage interest rate for a defined period. This offer is a “1-0 buydown,” which means the rate is reduced by 1 percentage point in Year 1 only. In Year 2, the rate returns to the note rate (the rate on your actual loan documents) and stays there for the remaining life of the loan.
The way it works mechanically: a buydown account is funded at closing. Each month during Year 1, the difference between your note rate payment and your reduced rate payment is drawn from that account to make up the shortfall to the lender. At month 13, the account is depleted and your payment steps up to the full note rate. The Consumer Financial Protection Bureau (CFPB) explains this structure in detail at cfpb.gov.
In most transactions, that buydown account is funded by the seller, the builder, or the lender. In this offer from ShopMortgageRates.com, the cost is covered through a lender credit. That means it is not added to your loan balance, not deducted from your down payment, and not paid by you at closing. The word “free” here has a specific and honest meaning.
What this is NOT: this is not a grant, not income-based assistance, not a government subsidy, and not a permanent rate reduction. It is a time-limited payment structure funded by a third party on your behalf.
The distinction between a temporary buydown and permanent discount points matters enormously. Permanent points are paid by the borrower at closing to reduce the rate for the life of the loan. They cost real money upfront. A temporary buydown is funded externally, lasts one year, and in this case costs the borrower nothing.
Structured Comparison: 1-0 Buydown vs. Permanent Points vs. No Buydown
Feature | 1-0 Temporary Buydown | Permanent Discount Points | No Buydown
Year 1 Rate: Note Rate minus 1.00% | Permanently reduced rate | Full note rate from Day 1
Year 2+ Rate: Returns to full note rate | Stays at reduced rate for loan life | Full note rate throughout
Cost to Borrower: $0 (funded by lender credit in this offer) | Paid upfront by borrower at closing | $0
Year 1 Benefit: Lower monthly payment for 12 months | Lower payment for entire loan term | No reduction
Lifetime Benefit: Year 1 savings only | Savings compound over loan life | None
Best For: Buyers needing near-term cash flow relief | Buyers staying long-term who can afford upfront cost | Buyers who prefer simplicity
The bottom line for Step 1: you are getting a real, structured rate reduction in Year 1 at no personal cost. Know what you’re getting, know what it isn’t, and you’re ready to see what the actual savings look like.
Step 2: Run the Real Math — See Your Actual First-Year Savings
Numbers make this real. The following calculations are illustrative examples using hypothetical rates for educational purposes. They are not rate quotes or guarantees. Actual rates depend on your credit profile, loan type, market conditions, and lender at time of application.
With that clearly stated, here is the math that matters.
Scenario A: Henrico County / Richmond Area Purchase
Purchase Price: $400,000 (representative of the Henrico County median range). Down Payment: 20% ($80,000). Loan Amount: $320,000. Loan Type: 30-year fixed conventional.
Illustrative Note Rate: 7.00%
Monthly Principal and Interest at 7.00% (note rate, Year 2+): $2,129
Buydown Rate Year 1 (6.00%): Monthly P&I = $1,919
Monthly Savings in Year 1: $210
Total First-Year Savings: $210 x 12 = $2,520
At month 13, your payment increases to $2,129. This is not a surprise event. It is a scheduled, documented step-up that you will know about before you sign anything. Planning for it means budgeting the $210 difference into your financial picture starting in Year 2. Understanding your mortgage rate lock strategy before closing ensures you capture the best available note rate before this buydown is applied.
Scenario B: Short Pump / Glen Allen / Goochland Higher-Price Market
Loan Amount: $500,000. Loan Type: 30-year fixed conventional. Illustrative Note Rate: 7.00%.
Monthly P&I at 7.00% (Year 2+): $3,327
Monthly P&I at 6.00% (Year 1 Buydown Rate): $2,998
Monthly Savings: $329
Total First-Year Savings: $329 x 12 = $3,948
Because this buydown is free to the borrower, there is no traditional breakeven calculation required on your side. You are not spending money upfront to recoup later. The savings in Year 1 are pure benefit. The only planning question is: are you prepared for the payment step-up at month 13? The answer should be yes, because you know the note rate before you close.
Rate-Payment Comparison Table (Illustrative — Not a Rate Quote)
Loan Amount | Note Rate | Year 1 Buydown Rate | Year 1 Monthly P&I | Year 2+ Monthly P&I | Annual Year 1 Savings
$250,000 | 7.00% | 6.00% | $1,499 | $1,663 | $1,968
$320,000 | 7.00% | 6.00% | $1,919 | $2,129 | $2,520
$400,000 | 7.00% | 6.00% | $2,398 | $2,661 | $3,156
$500,000 | 7.00% | 6.00% | $2,998 | $3,327 | $3,948
$600,000 | 7.00% | 6.00% | $3,597 | $3,992 | $4,740
Note: All figures are principal and interest only. Taxes, insurance, and any applicable mortgage insurance are not included. These are educational illustrations only.
Want to run your own numbers? Use the mortgage payment calculator or the home loan calculator at ShopMortgageRates.com to model your specific loan amount and scenario.
Step 3: Confirm You Qualify — Loan Types, Credit, and Property Requirements
Temporary buydowns are available across multiple loan programs, but each program has its own rules governing how a buydown can be structured and funded. Here is what you need to know by loan type.
Conventional Loans (Fannie Mae / Freddie Mac): Temporary buydowns are permitted. The buydown account can be funded by the seller, builder, or lender. Seller concession limits apply, typically ranging from 3% to 6% of the purchase price depending on your loan-to-value ratio. Credit score baseline: generally 620 or higher, though stronger profiles unlock better pricing. Buyers weighing their options should review the FHA vs conventional loan comparison to determine which program best fits their financial profile.
FHA Loans: Temporary buydowns are permitted under FHA guidelines. Reference HUD.gov for FHA-specific buydown rules and seller concession limits. Credit score baseline: 580 or higher for standard FHA financing. FHA loans are a strong option for buyers in Richmond, Chesterfield, and Fredericksburg markets where purchase prices fall within FHA loan limits. See the FHA loan application page for program details.
VA Loans: Temporary buydowns are permitted for eligible veterans and active-duty service members. VA loans have their own concession rules, and the VA does not set an official minimum credit score, though lender overlays typically apply. Reference VA.gov for official VA loan buydown and concession guidance. Hampton Roads, Norfolk, Virginia Beach, Newport News, Chesapeake, and Yorktown have significant veteran populations who may benefit from pairing a VA loan with this buydown offer. Learn more at the VA loan benefits page.
USDA Loans: Check current program guidelines. USDA loans serve rural and suburban areas, and several Virginia markets qualify for geographic eligibility, including Caroline County, Louisa, Goochland, and parts of Hanover and Spotsylvania. Buyers exploring rural financing options should review the available USDA mortgage lenders in Virginia to confirm program eligibility for their target area. Buydown availability should be confirmed at application.
Jumbo and Non-QM Loans: Buydown availability on jumbo and non-QM products depends on the individual wholesale lender. ShopMortgageRates.com accesses hundreds of lenders, which expands the likelihood of finding a buydown-eligible jumbo program for higher-priced purchases in Short Pump, Glen Allen, Charlottesville, or Albemarle. Buyers in these price ranges should review jumbo loan requirements in Virginia before applying.
Loan Type Eligibility Table
Loan Type | Buydown Permitted | Funded By | Credit Score Baseline | Geographic Notes
Conventional | Yes | Seller, builder, or lender | 620+ | Statewide VA, FL, TN, GA
FHA | Yes | Seller, builder, or lender | 580+ (HUD.gov) | Statewide; check county loan limits
VA | Yes | Seller, builder, or lender | No official minimum; overlays apply (VA.gov) | Strong fit for Hampton Roads, Yorktown, Newport News
USDA | Check guidelines | Seller or lender | Typically 640+ | Rural VA: Caroline, Louisa, Goochland
Jumbo / Non-QM | Lender-dependent | Lender | Varies | Short Pump, Glen Allen, Charlottesville
Geographic Eligibility for This Offer: Virginia (Richmond, Chesterfield, Henrico, Midlothian, Short Pump, Glen Allen, Fredericksburg, Spotsylvania, Stafford, Hanover, Ashland, Charlottesville, Williamsburg, Hampton Roads, Virginia Beach, Chesapeake, Newport News, Roanoke, Lynchburg, Lake Anna, Goochland, Louisa, Caroline County, Albemarle, Yorktown, Suffolk, Prince William), plus Florida, Tennessee, and Georgia.
Property Types: Primary residences and most second homes are eligible. Investment property eligibility varies by loan program and lender. Confirm at the time of application.
Step 4: Get Pre-Qualified Without a Credit Hit — The No-Touch Credit Process
One of the most common reasons homebuyers hesitate to start the mortgage process is the fear of damaging their credit score during early exploration. That concern is legitimate, and it’s one that ShopMortgageRates.com’s No-Touch Credit pre-qualification directly addresses.
The No-Touch Credit process uses a Vantage Score 4.0 soft pull. A soft inquiry does not affect your credit score. It gives you and the loan advisor a clear picture of your credit profile without leaving any footprint on your report. You can explore your qualification range, see which loan programs you’re eligible for, and understand what the buydown offer looks like for your specific situation, all before any formal commitment. Borrowers who want to understand this process in depth should read the full guide on soft credit pull mortgage shopping in Virginia.
How the No-Touch Pre-Qualification Process Works:
1. Submit your basic financial information online through ShopMortgageRates.com. This includes income, assets, and property details, but does not trigger a hard inquiry.
2. A Vantage Score 4.0 soft pull runs automatically. This generates your credit profile without impacting your score.
3. You receive a qualification range and a review of loan program options, including buydown-eligible programs available through the lender network.
4. No credit score impact. You can explore, ask questions, and compare options before deciding to move forward.
When you’re ready to formally lock a rate or submit a purchase offer, a hard pull pre-approval letter is required. That step happens when you choose to proceed, not during initial exploration.
This matters specifically for the June 30 deadline. You can start the process today, understand your buydown eligibility, see the real savings math for your loan amount, and make an informed decision, all without affecting your credit. That removes the most common barrier to getting started.
Here’s the additional advantage: ShopMortgageRates.com simultaneously shops hundreds of wholesale lenders. The free buydown offer is paired with the most competitive underlying note rate available from that marketplace, not just the best rate from a single lender’s product shelf. Buyers who want to understand how to lock in the lowest mortgage rates in Virginia will find that a multi-lender marketplace consistently outperforms single-lender comparisons.
A factual note on rate shopping and credit: according to CFPB guidance at cfpb.gov, multiple mortgage inquiries within a short window (typically 14 to 45 days depending on the scoring model) are treated as a single inquiry for scoring purposes. Rate shopping does not compound credit damage the way many borrowers fear. The soft pull pre-qualification takes that concern off the table entirely during the exploration phase.
Many direct lenders, including well-known names like Rocket Mortgage, Movement Mortgage, and PrimeLending, originate from their own product shelf. That means their loan officers are comparing options within one company’s offerings. ShopMortgageRates.com operates as a mortgage broker, accessing a wholesale marketplace of hundreds of lenders. These are structurally different models, and the difference in rate and fee outcomes can be meaningful depending on your profile. Borrowers with competing offers are also welcome to bring those to ShopMortgageRates.com for rate matching.
Start the no-credit-impact process at the mortgage approval process page, or review rate comparison options at the mortgage rate comparison page.
Step 5: Compare ShopMortgageRates.com to Local and National Lenders — What the Numbers Actually Show
Before you claim any mortgage offer, you should understand who you’re working with and how their model compares to the alternatives. This section is designed to help you ask the right questions of any lender, not just ShopMortgageRates.com.
The fundamental structural difference in the mortgage market is broker versus direct lender. A direct lender (Rocket Mortgage, Movement Mortgage, Freedom Mortgage, PrimeLending, Alcova Mortgage, Fairway Independent Mortgage, Atlantic Bay Mortgage, and others) funds loans from their own capital and offers products from their own program shelf. A mortgage broker (ShopMortgageRates.com) submits loan files to multiple wholesale lenders and presents the borrower with options from across that marketplace. Both models are legitimate. The question is which one produces better outcomes for your specific profile. Reviewing a detailed guide on how to choose a mortgage lender in Virginia can help you evaluate both models objectively.
Five Questions Every Borrower Should Ask Any Lender:
1. Is the buydown funded by you, or is the cost being added to my loan balance or rolled into my rate?
2. What is the APR, not just the interest rate? APR captures fees and gives a more complete cost picture.
3. What are your total lender fees (origination, underwriting, processing)?
4. How many lenders are you comparing to find my rate and program?
5. What does my payment become at month 13, and is that documented in my loan disclosures?
Any lender who cannot answer all five clearly and in writing deserves follow-up questions before you proceed.
Structured Comparison: ShopMortgageRates.com vs. Typical Direct Lender Model
Feature | ShopMortgageRates.com (Broker) | Typical Direct Lender
Lender Access | Hundreds of wholesale lenders | Single lender’s product shelf
Free Buydown Offer | Yes, through lender credit (expires June 30) | Ask if equivalent program exists at no cost
Credit Check at Pre-Qual | Soft pull only (Vantage Score 4.0, no score impact) | Varies; many require hard pull for pre-approval
Rate Shopping | Simultaneous multi-lender comparison | Internal product comparison only
Close Speed | Among fastest available | Varies by lender
Availability | 24/7 | Business hours typical
Realtor Referral Program | Yes | Varies
Competing Offer Matching | Yes | Varies
Virginia-based competitors worth knowing: CapCenter is a Virginia-based lender known for a low-closing-cost model. Alcova Mortgage operates as a Virginia regional lender with branch presence. Prosperity Mortgage and Southern Trust Mortgage are active in Richmond and surrounding markets. RatePro Mortgage and River City Lending serve the Virginia market as well. All are legitimate options with their own strengths. The honest question for any of them is whether they offer an equivalent free temporary buydown program, and if so, how it is funded and whether any cost is embedded elsewhere in your loan terms. Buyers who want to understand the full closing cost breakdown on any loan offer will be better positioned to compare total costs across lenders.
The free buydown offer from ShopMortgageRates.com is a specific, dated promotion. Borrowers should confirm with any lender they’re considering whether a comparable offer exists and ask for it in writing.
For real estate professionals in Virginia, the ShopMortgageRates.com realtor referral program provides a structured way to offer clients access to this buydown offer and the broader lender marketplace. Fastest close times and 24/7 availability are operational differentiators that matter when transaction timelines are tight.
Putting It All Together Before June 30
Let’s recap what you now know. A 1-0 temporary buydown reduces your effective rate by 1 percentage point in Year 1, returns to your note rate in Year 2, and in this offer costs you nothing because it is funded through a lender credit. On a $320,000 loan at a 7.00% illustrative note rate, that represents approximately $2,520 in Year 1 savings. On a $500,000 loan, it’s closer to $3,948. The math is transparent and documented.
You can confirm your eligibility across conventional, FHA, VA, USDA, and select jumbo programs. You can start the process today using a soft pull pre-qualification that does not affect your credit score. And you can compare ShopMortgageRates.com’s multi-lender marketplace against any direct lender you’re already considering, using the five questions in Step 5 as your framework.
The offer expires June 30. That is a real deadline, not a marketing device. If you are purchasing a home or refinancing in Virginia, Florida, Tennessee, or Georgia, the window to act is now.
Securely pre-qualify in minutes with no impact to your credit score and see exactly what this buydown offer means for your loan amount, your monthly payment, and your Year 1 budget.