11/01/2026
A resale seller in Colorado Springs who wants to buy down a buyer's mortgage rate has a fixed limit on how much they can spend. Fannie Mae counts any rate buydown paid by a seller as an interested party contribution. On a conventional loan for a principal residence, it caps those contributions at 3% of the price when the buyer borrows more than 90% of the home's value. The cap rises to 6% between 75.01% and 90% and to 9% at 75% or below. Each percentage is measured against the lower of the sales price or the appraised value.
Builder rates near 5% versus a 7% market average in Colorado Springs come partly from mortgage concession rules that treat builders and resale sellers differently. Here's how the caps work this fall.
