2-1 & 3-2-1 Rate Buydown Mortgages in Alaska
A rate buydown is a one-time funded reduction in your monthly mortgage payment for the first 1-3 years of the loan. The most common structures are 2-1 buydown (year 1 rate is 2% lower, year 2 is 1% lower, year 3 onward is the note rate) and 3-2-1 buydown (year 1 is 3% lower, year 2 is 2%, year 3 is 1%, year 4+ is the note rate). The funds come from a one-time payment at closing - typically from the seller as part of a concession.
Alaska at a glance
- Major metro
- Anchorage
- 2026 conforming loan limit (1-unit)
- $832,750 to $1,249,125
- High-cost counties
- Yes
- Active matching programs
- 17
Who it's for
Buyers in a high-rate environment expecting income growth or planning to refinance once rates drop, borrowers negotiating with motivated sellers willing to give a concession, and first-time buyers needing payment relief in year one while they adjust to homeownership costs.
Programs available in Alaska
Non-QM Mortgage Program
confirmed 5/15/2026A 30-year fixed rate program for primary residences and second homes that offers a temporary interest rate reduction during the first one or two years of the loan term.
FHA Mortgage Program
confirmed 5/17/2026FHA purchase program featuring down payment assistance and an optional 2/1 buydown, with no maximum income restrictions or first-time homebuyer requirements.
Bank Statement Loan for Self-Employed
confirmed 5/11/2026Jumbo loan program offering bank statement income qualification for primary, second, and investment properties with LTVs up to 85%.
Conventional Mortgage Program
confirmed 5/19/2026USDA Mortgage Program
confirmed 5/16/2026USDA loan program offering temporary interest rate buydown options including 1/0, 1/1, and 2/1 structures to lower initial monthly payments.
Jumbo Mortgage Program
confirmed 5/13/2026Jumbo loan program for primary, second, and investment properties with loan amounts up to $3 million, available for purchase and refinance.
VA Mortgage Program
confirmed 5/22/2026VA purchase loans featuring seller-paid buydowns to provide a lower interest rate for the first 12 or 24 months.
Bank Statement Loan for Self-Employed
confirmed 5/27/2026Bank statement loan program for self-employed borrowers allowing up to 90% LTV with 12-month bank statement documentation.
Conventional Mortgage Program
confirmed 5/10/2026A 30-year fixed rate mortgage program featuring a 12-month buydown period where the seller covers the cost to provide a lower interest rate for the first year.
Conventional Mortgage Program
confirmed 5/10/2026A 30-year fixed rate mortgage program featuring a 24-month buydown period where the seller covers the cost to provide a lower interest rate for the first two years.
Jumbo Mortgage Program
confirmed 5/16/2026Fannie Mae and Freddie Mac conforming and high balance loan programs offering temporary interest rate buydown options including 1/0, 1/1, 2/1, and 3/2/1 structures.
VA Mortgage Program
confirmed 5/16/2026VA loan program offering temporary interest rate buydown options including 1/0, 1/1, 2/1, and 3/2/1 structures to lower initial monthly payments.
FHA Mortgage Program
confirmed 5/16/2026FHA loan program offering temporary interest rate buydown options including 1/0, 1/1, 2/1, and 3/2/1 structures to lower initial monthly payments.
Bank Statement Loan for Self-Employed
confirmed 5/26/2026Bank statement loan program for self-employed borrowers with options up to 90% LTV.
Jumbo Mortgage Program
confirmed 5/15/2026Jumbo loan program for primary, second, and investment properties with loan amounts up to $3 million, allowing non-warrantable condos.
Jumbo Mortgage Program
confirmed 5/15/2026Jumbo loan program for primary, second, and investment properties with loan amounts up to $3 million, offering bank statement or full documentation options.
Conventional Mortgage Program
confirmed 5/8/2026A temporary rate buydown program that provides a 1% interest rate reduction for the first 12 months of the loan term on purchase transactions.
Frequently asked questions
How is a buydown different from buying down the rate with points?
A temporary buydown (2-1, 3-2-1) reduces payments for 1-3 years then returns to the note rate. Discount points permanently reduce the note rate for the life of the loan. Both are paid at closing but the math is very different.
How much does a 2-1 buydown cost?
Cost is roughly the sum of the year-1 and year-2 payment differences. On a $400K loan with a 6.5% note rate and a 2-1 buydown, expect roughly $8,000-$10,000 funded into escrow at closing.
Can I get a buydown on a refinance?
Less common. Buydowns are usually used on purchases where seller concessions can fund them. Refinance buydowns funded by the borrower defeat the point - the same money paid as discount points would permanently lower the rate.
Do all loan programs allow buydowns?
FHA, conventional, VA, and most non-QM programs allow temporary buydowns. The exact buydown structure (2-1, 3-2-1, 1-0) varies by program.
Get a rate for Alaska
Pricing for Anchorage and the rest of Alaska. No personal information required.
Get instant pricingToday's mortgage rates
Conventional
5.875%
5.906% APR
FHA
5.375%
5.405% APR
VA
5.375%
5.402% APR
Conv: 80% LTV, 780 FICO. FHA: 96.5% LTV, 680 FICO. VA: 100% LTV, 680 FICO. 30-yr fixed. Your rate may vary.