The reduced payments are supported by an escrow account funded by Rocket Mortgage, which covers the difference in interest payments during the buydown period. Homebuyers remain responsible for taxes and insurance premiums.
The mortgage program is available to buyers who apply directly through Rocket Mortgage or work with a mortgage broker partnered with Rocket Pro TPO. To qualify, homebuyers must be purchasing a single-family home and have an income at or below 80% of the area median income (AMI).
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“Many buyers fear being stretched too thin during the early years of homeownership, especially as they consider the cost of new furnishings and special touches to make the new home their own,” Bill Banfield, chief business officer and economist at Rocket, said in a Press release. “By lowering the interest rate for the first two years, ‘Welcome Home RateBreak’ provides financial breathing room, giving consumers the confidence to enter the market and make their homeownership dreams a reality.”
“Welcome Home RateBreak” follows initiatives like the ONE+ program, which reduces upfront costs by allowing a 1% down payment, with Rocket covering the additional 2% needed to meet conventional loan requirements.
