What is a temporary rate buydown funded by the seller, and do I still qualify at the higher rate?

A seller-funded temporary buydown uses seller concession money to lower your interest rate for the first one to three years, reducing your early payments while you settle into homeownership. The funds sit in an escrow account and supplement your monthly payment during the buydown period. Critically, lenders qualify you at the full, un-bought-down note rate, so you must show you can afford the eventual payment, not just the discounted one. This structure is popular when sellers prefer offering a buydown over cutting the price, because it preserves the comparable sale value for the neighborhood. If you refinance or sell before the buydown ends, any unused escrow funds are typically credited toward your loan balance.