{"id":10677,"date":"2026-10-22T08:00:00","date_gmt":"2026-10-22T13:00:00","guid":{"rendered":"https:\/\/lrgrealty.com\/lrg-blog\/?p=10677"},"modified":"2026-10-21T10:47:07","modified_gmt":"2026-10-21T15:47:07","slug":"seller-paid-buydown-texas","status":"publish","type":"post","link":"https:\/\/lrgrealty.com\/lrg-blog\/seller-paid-buydown-texas\/","title":{"rendered":"Seller-Paid 2-1 Buydown in Texas: The Math and the Negotiation"},"content":{"rendered":"<div class=\"rl-page\">\n<header class=\"rl-hero\">\n<div class=\"rl-eyebrow\">Process \u00b7 Guide<\/div>\n<h1>Seller-Paid 2-1 Buydown in Texas: The Math and the Negotiation<\/h1>\n<p><a class=\"rl-cta-primary\" href=\"\/lrg-blog\/connect-with-lrg\/?ref=seller-paid-buydown-texas\">Connect with LRG \u2192<\/a><br \/>\n<\/header>\n<p>A seller paid 2-1 buydown gives Texas buyers a starting rate two points below the note rate, cutting monthly payments by $375 in year one on a $302,000 San Antonio purchase. The seller deposits 1.9% to 2.3% of the sale price into escrow to subsidize those payments for 24 months. Once that escrow runs out, the buyer pays the full 7.40% rate permanently.<\/p>\n<div class=\"rl-qstats rl-qstats-v2\">\n<div class=\"rl-qs\">\n<div class=\"v\">7.40%<\/div>\n<div class=\"l\">30-Yr Rate (PMMS)<\/div>\n<\/div>\n<div class=\"rl-qs\">\n<div class=\"v\">$375\/mo<\/div>\n<div class=\"l\">Year-1 Payment Savings<\/div>\n<\/div>\n<div class=\"rl-qs\">\n<div class=\"v\">$6,807<\/div>\n<div class=\"l\">Buydown Escrow (SA)<\/div>\n<\/div>\n<div class=\"rl-qs\">\n<div class=\"v\">$302K<\/div>\n<div class=\"l\">SA Median (SABOR)<\/div>\n<\/div>\n<\/div>\n<article class=\"rl-atf-v2-card\">\n<h3>Before You Request a Buydown<\/h3>\n<ul>\n<li data-fact-id=\"escrow_pct_of_price\">Your purchase contract needs a buydown addendum specifying the seller funds an escrow account, typically 1.9% to 2.3% of the sale price.<\/li>\n<li data-fact-id=\"buydown_21_definition\">A 2-1 temporary buydown works with conventional, FHA, and VA loans, but each loan type caps how much the seller can contribute at closing.<\/li>\n<li data-fact-id=\"sa_5pct_escrow_total\">The escrow deposit on a San Antonio home with 5% down totals $6,807, and sellers in a soft market may push back on that concession.<\/li>\n<\/ul>\n<\/article>\n<div class=\"rl-atf-faqhead\"><span class=\"rl-kicker\">Asked First<\/span>Top questions before you dig in<\/div>\n<details>\n<summary>Do sellers pay closing costs in Texas?<\/summary>\n<p>Texas sellers can pay a portion of buyer closing costs as a negotiated concession, and a 2-1 temporary rate buydown is one way to structure that contribution. On a $302,000 San Antonio home, the seller-funded buydown escrow runs between $5,732 and $6,807 depending on the down payment.<\/p>\n<\/details>\n<details>\n<summary>What are the typical closing costs for a home seller in Texas?<\/summary>\n<p>Texas home sellers cover the real estate agent commission, title insurance for the buyer, prorated property taxes, and any concessions written into the contract. When a seller funds a 2-1 rate buydown, the escrow deposit adds to those costs but can make the home more attractive to buyers.<\/p>\n<\/details>\n<details>\n<summary>What is a remote seller?<\/summary>\n<p>A remote seller is a business that sells goods or services into a state where it has no physical presence, and state tax commissions require those sellers to register, collect sales tax, and file returns in the buyer&#8217;s jurisdiction. The term applies to online commerce, not residential real estate transactions like seller-paid buydowns.<\/p>\n<\/details>\n<section class=\"rl-bluf\">\n<h2 id=\"the-bottom-line-up-front\">The Bottom Line Up Front<\/h2>\n<p><strong>A seller-paid 2-1 buydown lets Texas buyers start with monthly payments hundreds of dollars lower than the note rate, funded entirely from the seller&#8217;s side of the closing table. The catch: the savings are temporary, the escrow deposit adds thousands to the seller&#8217;s costs, and buyers must qualify at the full 7.40% rate regardless of the year-one discount.<\/strong><\/p>\n<p>On a $302,000 San Antonio home with 5% down, the seller deposits $6,807 into an escrow account. That buys the borrower a $375 monthly savings in year one and $192 in year two. In Austin, where the median sits at $560,000, a 20%-down buydown costs the seller $10,630. The escrow runs between 1.9% and 2.3% of the sale price. Lenders require the buyer to qualify at the full note rate, so the buydown does not expand purchasing power.<\/p>\n<ul>\n<li>A 2-1 buydown cuts the effective rate to 5.40% in year one and 6.40% in year two.<\/li>\n<li>The seller funds the entire escrow deposit, running $5,732 to $10,630 depending on loan size.<\/li>\n<li>Buyers qualify at the full 7.40% note rate, so the buydown adds no extra purchasing power.<\/li>\n<li>A price reduction saves $45 per month permanently, while a 2-1 buydown saves $375 temporarily.<\/li>\n<li>San Antonio&#8217;s 6 months of inventory and 90% sale-to-list ratio give buyers room to request concessions.<\/li>\n<\/ul>\n<\/section>\n<section>\n<h2 id=\"how-a-seller-paid-buydown-works\">How a Seller-Paid Buydown Works<\/h2>\n<p>A seller-paid buydown is a closing concession where the seller deposits money into an escrow account at settlement, and that account subsidizes the buyer&#8217;s mortgage payments during the first years of the loan. The structure is simple. In a 2-1 buydown, the effective interest rate drops 2 percentage points below the note rate in year one and 1 point below in year two, then resets to the full permanent rate starting in year three. On a $302,000 <a href=\"\/listings\/homes-for-sale-san-antonio\/\">San Antonio<\/a> home with 5% down, the loan is $286,900 at a 7.40% note rate.<\/p>\n<table>\n<caption>How a Seller-Paid Buydown Works<\/caption>\n<thead>\n<tr>\n<th>Buydown Year<\/th>\n<th>Effective Rate<\/th>\n<th>Monthly P&amp;I<\/th>\n<th>Monthly Savings<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Year 1<\/td>\n<td>5.40%<\/td>\n<td>$1,611<\/td>\n<td>$375<\/td>\n<\/tr>\n<tr>\n<td>Year 2<\/td>\n<td>6.40%<\/td>\n<td>$1,795<\/td>\n<td>$192<\/td>\n<\/tr>\n<tr>\n<td>Year 3 onward<\/td>\n<td>7.40%<\/td>\n<td>$1,986<\/td>\n<td>$0<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>The seller deposits $6,807 into escrow at closing, and the account pays the rate difference each month. Year-one savings of $375 per month give the buyer room to cover move-in costs, build cash reserves, or absorb the first property tax and insurance cycle before the full payment amount kicks in. By year two, the monthly savings narrow to $192 as the rate steps up. Once the escrow is spent at the start of year three, the buyer pays $1,986 at the full note rate. Buyers bring no extra cash to closing for the buydown. The seller funds the entire deposit.<\/p>\n<\/section>\n<section>\n<h2 id=\"whats-included-in-a-seller-paid-buydown\">What&#8217;s Included in a Seller-Paid Buydown?<\/h2>\n<p>A seller-paid buydown packages three components at closing: the escrow deposit funded by the seller, the buydown agreement that defines the temporary rate schedule, and lender disclosures showing exactly how your monthly payment steps up each year. On a 2-1 buydown, the seller&#8217;s deposit covers the gap between your reduced rate and the note rate across both subsidized years.<\/p>\n<div class=\"rl-callout rl-callout--file_guidance\">\n<strong>Buyer Guidance<\/strong><\/p>\n<p>Review the buydown agreement line by line before closing day. Confirm the escrow deposit amount matches the seller concession on your closing disclosure. Verify the schedule lists your year-one rate, year-two rate, and the permanent note rate with exact monthly payment amounts for each period. If any figure conflicts with your loan estimate, raise it with your loan officer before you sign.<\/p>\n<\/div>\n<p>The seller&#8217;s concession covers the escrow deposit only. Everything else stays with the buyer. Remaining closing costs, prepaid taxes, homeowner&#8217;s insurance, and title fees require separate negotiation. For a San Antonio purchase at $302,000 with 5% down, the buydown escrow runs $6,807, about 2.25% of the sale price as a one-time cost the seller pays at the closing table. Those escrowed funds sit in a dedicated account and draw down each month, covering the gap between your reduced payment and the lender&#8217;s full-rate amount.<\/p>\n<\/section>\n<section>\n<h2 id=\"do-sellers-typically-pay-closing-costs-in-texas\">Do Sellers Typically Pay Closing Costs in Texas?<\/h2>\n<p>Sellers in Texas cover their own closing costs and can also fund the buyer&#8217;s rate buydown as a <a href=\"\/lrg-blog\/seller-concessions-2026-guide\/\">concession built into the sale<\/a>. The loan program and the buyer&#8217;s down payment determine the concession ceiling, not Texas state law. The buydown escrow deposit counts against that cap, so it competes directly with other seller-paid credits.<\/p>\n<div class=\"bullet-section-gray\">\n<ul>\n<li><strong>Conventional loan caps:<\/strong> Lender guidelines tie the seller&#8217;s maximum contribution to the buyer&#8217;s down payment. A buyer with a smaller down payment faces a lower concession ceiling than one putting more down, which limits how much room remains after the buydown deposit is funded.<\/li>\n<li><strong>FHA and VA programs:<\/strong> Government-backed loans set their own concession ceilings independent of conventional guidelines. Both FHA and VA programs allow enough seller contribution to cover a full <a href=\"\/lrg-blog\/builder-incentives-rate-buydowns-texas-new-builds\/\">2-1 buydown<\/a> escrow deposit on a purchase near the San Antonio median of $302,000 without exhausting the cap.<\/li>\n<li><strong>Buydown vs. other credits:<\/strong> The escrow deposit shares the concession cap with title fees, prepaid taxes, and any other seller-paid items the buyer negotiates. Prioritizing the buydown in the contract means reducing or eliminating other seller credits.<\/li>\n<li><strong>Current market leverage:<\/strong> San Antonio&#8217;s 6 months of inventory and 90% sale-to-original-list ratio put buyers in a stronger negotiating position when requesting concessions like a buydown. Sellers facing extended market exposure and active competing listings are more open to funding a temporary rate reduction than sellers in a tight, low-inventory environment.<\/li>\n<\/ul>\n<\/div>\n<\/section>\n<div class=\"rl-cta-mid\"><a class=\"rl-cta-pill\" href=\"\/lrg-blog\/connect-with-lrg\/?ref=seller-paid-buydown-texas\">Connect with LRG \u2192<\/a><\/div>\n<section>\n<h2 id=\"typical-closing-costs-for-a-home-seller-in-texas\">Typical Closing Costs for a Home Seller in Texas<\/h2>\n<p>Sellers in Texas carry several line items at closing that cut into net proceeds. On a home at the San Antonio median of $302,000, the largest expense is the real estate commission, followed by the owner&#8217;s <a href=\"\/lrg-blog\/title-insurance-texas-costs-guide\/\">title insurance<\/a> policy, prorated <a href=\"\/lrg-blog\/2026-texas-property-taxes-homestead\/\">property taxes<\/a>, and escrow and recording charges. When a seller funds a 2-1 buydown, the escrow deposit joins this list as a separate settlement item.<\/p>\n<table>\n<caption>Typical Closing Costs for a Home Seller in Texas<\/caption>\n<thead>\n<tr>\n<th>Cost Category<\/th>\n<th>What It Covers<\/th>\n<th>Notes<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Real estate commission<\/td>\n<td>Agent compensation for both sides, negotiated in the listing agreement<\/td>\n<td>Largest single seller expense<\/td>\n<\/tr>\n<tr>\n<td>Owner&#8217;s title insurance<\/td>\n<td>Protects the buyer&#8217;s ownership claim<\/td>\n<td>Seller pays under Texas custom<\/td>\n<\/tr>\n<tr>\n<td>Prorated property taxes<\/td>\n<td>Seller&#8217;s share of annual taxes through the closing date<\/td>\n<td>Adjusted at settlement<\/td>\n<\/tr>\n<tr>\n<td>Escrow and recording fees<\/td>\n<td>Title company processing and county filing charges<\/td>\n<td>Fixed fees<\/td>\n<\/tr>\n<tr>\n<td>Buydown escrow deposit<\/td>\n<td>Funds the buyer&#8217;s temporary rate reduction<\/td>\n<td>$5,732 to $6,807 on a $302,000 sale<\/td>\n<\/tr>\n<tr>\n<td>Repair or inspection credits<\/td>\n<td>Negotiated credits for property condition issues<\/td>\n<td>Varies by inspection findings<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>The buydown escrow deposit runs 1.9% to 2.3% of the sale price. On a $302,000 home, $5,732 to $6,807 places the deposit in the same range as title and escrow fees. Price cuts work differently. Cutting $6,807 from the list price saves the seller the same dollar amount at closing but permanently lowers the appraised value and comparable sales record for the neighborhood. With San Antonio homes averaging 81 days on market, a buydown concession can move a listing without eroding the comps.<\/p>\n<\/section>\n<section>\n<h2 id=\"do-you-have-to-pay-taxes-on-marketplace-sales\">Do You Have to Pay Taxes on Marketplace Sales?<\/h2>\n<p>A seller-paid buydown is a closing concession built into the purchase terms, not a separate transaction that triggers its own tax event. The seller&#8217;s deposit moves from their net proceeds into escrow, where it subsidizes the buyer&#8217;s rate. The buydown is not income. That transfer reduces the seller&#8217;s take-home without creating a reportable event for the buyer. Both sides should verify the treatment with a tax advisor before closing.<\/p>\n<div class=\"rl-callout rl-callout--file_guidance\">\n<strong>Buyer Guidance<\/strong><\/p>\n<p>Ask your title company for a settlement statement that itemizes the buydown escrow deposit on its own line. Keep every document showing the deposit amount, the rate reduction schedule, and the source of funds. A CPA or tax advisor who works with Texas real estate transactions can walk you through how the concession is reported and whether any portion affects your cost basis. Clean records at closing prevent questions down the road.<\/p>\n<\/div>\n<p>Sellers should fold the buydown escrow deposit into their net proceeds estimate alongside commissions, title fees, and any repair credits already negotiated. On a San Antonio home at the $302,000 median with 5% down, that deposit is $6,807, one more deduction from the seller&#8217;s bottom line before any <a href=\"\/lrg-blog\/capital-gains-tax-selling-home-texas-2026\/\">capital gains<\/a> calculation begins. Whether the expense qualifies for an offset depends on filing position, ownership timeline, and how the closing statement categorizes the concession. Buyers carry no additional tax burden from the subsidized rate, but keeping detailed settlement records that itemize each concession protects both parties.<\/p>\n<\/section>\n<section>\n<h2 id=\"what-is-a-remote-seller\">What Is a Remote Seller?<\/h2>\n<p>A remote seller is a property owner who does not live near the home being sold, and may be in another state or country entirely. These owners carry holding costs on a property they cannot manage in person, which makes them more receptive to a 2-1 buydown that moves the home faster without reducing the list price.<\/p>\n<div class=\"bullet-section-blue\">\n<ul>\n<li><strong>Holding costs create urgency:<\/strong> A remote owner still paying a mortgage, property taxes, insurance, and HOA dues on a vacant property faces compounding monthly costs. Funding a buydown can be cheaper for the seller than another month of carrying an empty house.<\/li>\n<li><strong>Inheritance and relocation are key triggers:<\/strong> Sellers who inherited a Texas property, transferred out of state for work, or moved into assisted living all fit the profile. These owners have less attachment to the sale price and stronger motivation to close on a predictable timeline with fewer contingencies.<\/li>\n<li><strong>Listing signals reveal the situation:<\/strong> Extended days on market, one or more price reductions, and a listing agent located in a different city from the property all point toward a remote owner. Buyers who spot these signals can propose a buydown as part of their initial offer.<\/li>\n<li><strong>Sale price stays intact:<\/strong> Funding the buydown escrow keeps the contract price where the seller needs it for their mortgage payoff and equity position. The buyer gets real monthly payment relief during the first two years of the loan without the seller taking a hit on the bottom line.<\/li>\n<\/ul>\n<\/div>\n<\/section>\n<section>\n<h2 id=\"how-a-buydown-changes-your-monthly-payment\">How a Buydown Changes Your Monthly Payment<\/h2>\n<p>A 2-1 buydown restructures your first two years of payments on a stair-step schedule. On a $286,900 loan at 7.40%, the full principal and interest payment runs $1,986 per month. The buydown escrow account covers the difference between that amount and a temporarily reduced rate, bringing the payment down to $1,611 in year one and $1,795 in year two before the permanent rate takes over.<\/p>\n<div class=\"bullet-section-green\">\n<ul>\n<li><strong>Year one at 5.40%:<\/strong> Your payment drops $375 per month below the full rate. That $375 comes out of the escrow deposit the seller funded at closing. Your loan balance and amortization schedule remain unchanged. The savings is purely a payment subsidy for the first twelve months.<\/li>\n<li><strong>Year two at 6.40%:<\/strong> The rate steps up one point and your payment rises to $1,795, still $192 per month below the permanent rate. This gradual increase bridges the gap between the deep first-year discount and the full payment you will carry from year three onward.<\/li>\n<li><strong>Year three reset:<\/strong> The escrow account is fully spent, and your payment locks at $1,986 for the remaining loan term. No further rate changes occur. The buydown has run its course, and you are on the permanent fixed rate.<\/li>\n<li><strong>Qualification baseline:<\/strong> Lenders underwrite at the full 7.40% note rate, not the temporary year-one rate. Your approval hinges on the $1,986 payment, so the buydown gives breathing room in early years without expanding the loan amount you qualify for.<\/li>\n<\/ul>\n<\/div>\n<\/section>\n<section>\n<h2 id=\"when-a-seller-paid-buydown-makes-sense-in-texas\">When a Seller-Paid Buydown Makes Sense in Texas<\/h2>\n<p>A seller-paid buydown makes strategic sense when market conditions hand buyers leverage and rate relief would close the deal faster than a price reduction. San Antonio&#8217;s 6 months of inventory and 90% sale-to-original-list ratio signal a market where sellers already concede ground on price. Redirecting part of that concession into a buydown gives the buyer immediate monthly relief instead of a marginally lower loan balance.<\/p>\n<div class=\"bullet-section-beige\">\n<ul>\n<li><strong>Slow-moving inventory:<\/strong> With San Antonio averaging 81 days on market and 17,567 active listings as of mid-2026, sellers who offer a buydown create a concrete payment advantage that separates their listing from the field without cutting the sale price.<\/li>\n<li><strong>Buyers near qualification limits:<\/strong> A buyer stretching to qualify at the full 7.40% rate gains $375 per month in year-one breathing room on a $286,900 loan, which can mean the difference between a conditional approval and a clean one.<\/li>\n<li><strong>Price-cut math:<\/strong> A straight price reduction on the same loan only lowers monthly payments by $45, while the buydown delivers $375 per month in year one, making the concession far more powerful at the payment line.<\/li>\n<li><strong>Protecting the comparable sale:<\/strong> The buydown keeps the recorded contract price intact in MLS and on the appraisal, so nearby sellers and the neighborhood&#8217;s price floor are not dragged down by a visible reduction on the purchase price.<\/li>\n<\/ul>\n<\/div>\n<\/section>\n<section>\n<h2 id=\"the-bottom-line\">The Bottom Line<\/h2>\n<p>A seller-paid buydown is a closing concession where the seller funds an escrow account that temporarily reduces the buyer&#8217;s mortgage rate during the first years of the loan. In Texas, sellers can offer this within the limits set by the buyer&#8217;s loan program and down payment size. The buydown packages three components at closing: the escrow deposit, the buydown agreement defining the rate schedule, and lender disclosures showing the payment structure.<\/p>\n<p>What matters most is whether the buydown fits both sides of the transaction. Buyers get lower payments early in the loan when cash flow is tightest. Sellers move a property faster without cutting the sale price. The concession is not a separate taxable event and does not change the loan&#8217;s permanent terms. Your lender and agent can run the numbers on a specific property to confirm the payment reduction justifies the cost.<\/p>\n<\/section>\n<div class=\"rl-cta-mid\"><a class=\"rl-cta-pill\" href=\"\/lrg-blog\/connect-with-lrg\/?ref=seller-paid-buydown-texas\">Connect with LRG \u2192<\/a><\/div>\n<section class=\"rl-faq\">\n<h2 id=\"frequently-asked-questions\">Frequently Asked Questions<\/h2>\n<details>\n<summary>How does a 2-1 buydown work on a Texas home purchase?<\/summary>\n<p>The seller funds an escrow account that temporarily lowers the buyer&#8217;s interest rate for two years. On a $302,000 San Antonio home with 5% down and a 7.40% note rate, monthly payments start at $1,611 in year one, rise to $1,795 in year two, then reach the permanent $1,986 from year three on.<\/p>\n<\/details>\n<details>\n<summary>How much does a seller-paid 2-1 buydown cost in San Antonio?<\/summary>\n<p>The escrow deposit depends on the loan amount. On a $302,000 home with 5% down, the buydown escrow runs $6,807. Put 20% down on that same price, and the escrow drops to $5,732 because the loan balance is smaller. That works out to 1.9% to 2.3% of the sale price. In Austin, where the median sits at $560,000, a 20%-down buydown escrow reaches $10,630. Sellers fold this cost into their net-proceeds math alongside agent commissions and title fees.<\/p>\n<\/details>\n<details>\n<summary>Is a seller-paid buydown better than a straight price reduction?<\/summary>\n<p>They solve different problems. A price cut on a $302,000 San Antonio home large enough to match the year-one buydown savings of $375 per month would reduce the payment by only about $45 per month on a permanent basis. The buydown delivers a much larger short-term reduction but disappears after two years. Buyers who plan to refinance or expect income growth over the next two years get more from the buydown. Buyers who intend to hold the loan long-term may prefer the permanent savings from a lower purchase price.<\/p>\n<\/details>\n<details>\n<summary>How do discount points compare to a seller-paid buydown?<\/summary>\n<p>Two discount points buy a permanent 0.50% rate reduction for the life of the loan, while a seller-paid buydown lowers payments temporarily for one to two years. Points cost more upfront but reduce the rate permanently, whereas a buydown front-loads larger monthly savings when cash flow is tightest.<\/p>\n<\/details>\n<details>\n<summary>Does the buyer qualify at the buydown rate or the full note rate?<\/summary>\n<p>The full note rate. Lenders underwrite the borrower at 7.40%, not the temporarily reduced 5.40% from year one. The buydown does not expand purchasing power or improve debt-to-income ratios. It only lowers the actual payment the buyer makes during the first two years. Some buyers assume the reduced rate lets them afford a more expensive home. It does not. Qualification is based on the permanent payment at the note rate. The buydown is strictly a cash-flow benefit after closing, not a qualification tool.<\/p>\n<\/details>\n<details>\n<summary>Can a seller-paid buydown be combined with other seller concessions in Texas?<\/summary>\n<p>Yes, but total seller concessions are capped by the loan program. Each loan type sets its own ceiling based on down payment size and concession category. The buydown escrow counts toward that cap. On a $302,000 San Antonio home with 5% down, the $6,807 escrow already uses 2.3% of the sale price, leaving room for additional credits depending on the program limit. Stacking a buydown with closing cost credits and repair allowances can push close to the ceiling. Have the lender confirm the full concession package fits within program guidelines during preapproval.<\/p>\n<\/details>\n<details>\n<summary>Are seller-paid buydowns available on VA loans in Texas?<\/summary>\n<p>VA loans do allow temporary buydowns, and the seller can fund them as part of the transaction. The buydown escrow counts within VA concession guidelines, so the total seller-paid package needs to fit within program limits. For Veterans purchasing near Joint Base San Antonio or Fort Cavazos, a seller-funded 2-1 buydown paired with VA&#8217;s zero-down-payment benefit keeps move-in costs low while reducing the first two years of payments. The lender still qualifies the Veteran at the full note rate, not the reduced buydown rate.<\/p>\n<\/details>\n<details>\n<summary>Do you have to pay taxes on marketplace sales?<\/summary>\n<p>Seller-paid buydown funds are generally treated as a concession rather than taxable income to the buyer. The interest you pay during the reduced-rate period may qualify as a mortgage interest deduction, but confirm the details with a tax professional for your situation.<\/p>\n<\/details>\n<\/section>\n<section class=\"rl-resources\">\n<h3>Resources Used<\/h3>\n<ul>\n<li><a href=\"https:\/\/www.freddiemac.com\/pmms\" rel=\"noopener noreferrer\" target=\"_blank\">Freddiemac.com: Freddie Mac PMMS<\/a><\/li>\n<li><a href=\"https:\/\/www.tpr.org\/economy-and-labor\/2026-10-16\/september-home-sales-and-prices-dip-in-september-in-san-antonio\" rel=\"noopener noreferrer\" target=\"_blank\">Tpr.org: TPR reporting SABOR September 2026 data<\/a><\/li>\n<li><a href=\"https:\/\/sabor.com\/wp-content\/uploads\/2026\/08\/SABOR-July-2026-SA-Market-Stats-Press-Release.pdf\" rel=\"noopener noreferrer\" target=\"_blank\">Sabor.com: SABOR MLS Report<\/a><\/li>\n<li><a href=\"https:\/\/livingwellinaustin.com\/blog\/austin-housing-market-update-september-2026-three-markets-three-stories\" rel=\"noopener noreferrer\" target=\"_blank\">Livingwellinaustin.com: ABoR data via Living Well in Austin<\/a><\/li>\n<\/ul>\n<\/section>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>A seller paid 2-1 buydown gives Texas buyers a starting rate two points below the note rate, cutting monthly payments by $375 in year one on a $302,000 San Antonio&#8230;<\/p>\n","protected":false},"author":27,"featured_media":10687,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[],"class_list":["post-10677","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-home-buying"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.8 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Seller-Paid 2-1 Buydown in Texas: The Math and the Negotiation<\/title>\n<meta name=\"description\" content=\"How a seller-paid 2-1 buydown works in Texas. The math on temporary rate reductions, negotiation strategies, and when a buydown beats a price cut.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/lrgrealty.com\/lrg-blog\/seller-paid-buydown-texas\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Seller-Paid 2-1 Buydown in Texas: The Math and the Negotiation\" \/>\n<meta property=\"og:description\" content=\"How a seller-paid 2-1 buydown works in Texas. 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