Mortgage rates have been hovering in the lower-6% range lately (Freddie Mac’s weekly survey showed 6.09% for the average 30-year fixed as of February 12, 2026). That reality has a lot of buyers thinking: “Do I wait… or do I get strategic?”

Here’s the good news: smart buyers aren’t just “accepting” today’s rate environment—they’re using three negotiation levers to improve affordability right now:

1. Assumable mortgages (when available)
2. Seller credits to reduce cash-to-close
3. Temporary buydowns to lower payments early on

Below is a clear, practical guide you can use on your next showing day—especially in our markets around San Antonio and the Texas Hill Country.

1) Assumable mortgages: “Can I take over their low rate?”

An assumable mortgage lets a buyer take over the seller’s existing loan terms—often including the interest rate—rather than getting a brand-new loan at today’s market rate.

What loans are typically assumable?

Most often, you’ll see assumptions on government-backed loans:

• FHA: FHA-insured forward mortgages are assumable (with servicer rules and approval).
• VA: VA loans may be assumable, but typically require lender/VA approval of the buyer’s creditworthiness (especially for loans committed on/after March 1, 1988).

(Conventional loans usually aren’t assumable unless the note specifically allows it—rare in modern lending.)

The big “gotcha”: the equity gap

If the seller has a low-rate loan but also a lot of equity, the buyer may need to bridge the difference between:

• the assumed loan balance, and
• the purchase price

That gap can be covered by:

• cash
• a second loan (if available)
• or sometimes creative structure (case-by-case)

When assumptions shine

Assumptions are most powerful when:

• the seller’s rate is meaningfully lower than today’s, and
• the equity gap is manageable

Pro tip: When we’re touring homes, we can quickly ask the listing agent:
“Is the current loan FHA/VA and assumable, and do you have the approximate loan balance and servicer?”

2) Seller credits: “Use the seller’s dollars to reduce my cash-to-close”

A seller credit (seller concession) is when the seller contributes money toward a buyer’s allowable closing costs/prepaids—sometimes even helping fund a buydown.

Why this is working in a 6%+ market

Even in competitive areas, many listings still have:

• longer days-on-market than sellers expected, or
• pricing that needs a little help to move

Seller credits can be the “make it work” tool that gets a deal done without the seller dropping the price as much.

Common uses for seller credits

• lender fees, title costs, escrow fees
• homeowner’s insurance + prepaid taxes
• HOA transfer fees (where applicable)
• temporary buydown funding (more on that below)

How much can a seller credit be?

Limits vary by loan type and structure.

• For FHA, interested parties may contribute up to 6% of the sales price toward certain costs.
• For conventional, allowable maximum financing concessions depend on occupancy and down payment (commonly 3% / 6% / 9% tiers).

Translation: The best move isn’t “ask for the most.” It’s “ask for the most you can actually use” based on your loan type, down payment, and closing cost profile.

3) Temporary buydowns: “Lower payments now, refinance later—without betting on rates”

A temporary buydown reduces the buyer’s effective interest rate for the first year or two (sometimes three), using funds placed into a buydown account—often paid by the seller, builder, or lender credit.

The popular one: 2-1 buydown

A typical 2-1 buydown works like this:

• Year 1: payment calculated as if rate is 2% lower
• Year 2: payment calculated as if rate is 1% lower
• Year 3+: payment returns to the note rate

Important: the loan’s note rate doesn’t change—the buydown fund subsidizes the payment difference during the early period.

A key underwriting reality

Even if the payment is lower in year one, lenders generally qualify the buyer using the note rate, not the reduced payment.
That means buydowns help cash flow, but they don’t magically bypass standard affordability guidelines.

When a buydown is a great fit

Buydowns can be excellent if:

• you expect income to rise (new role, commission ramp, relocation spouse starting work, etc.)
• you want a more comfortable payment while you settle in
• you plan to refinance if rates improve—without needing that to be guaranteed

How to choose the right strategy (quick guide)

If you find a home with an assumable FHA/VA loan…

• Start there. It can be the biggest “rate hack” on the table.
• Then evaluate the equity gap and timeline (assumptions can take longer than a standard loan).

If the home is priced well but payments feel tight…

• Push for a seller credit that funds a 2-1 buydown or offsets closing costs.

If you’re buying new construction…

• Builders often prefer incentives (credits/buydowns) over price cuts—so you may have more leverage than you think.

What this looks like in the real world (example scenarios)

• Scenario A (Assumption): You find a home with an assumable loan that’s below today’s rates. You bring in a manageable amount to cover the equity gap, and your monthly payment lands lower than it would with a new loan.
• Scenario B (Seller credit): You negotiate a seller credit that covers key closing costs, keeping more cash in your pocket for moving, repairs, and reserves.
• Scenario C (Buydown): You use a seller or builder credit to fund a 2-1 buydown, giving you lower payments early on, with a plan to refinance later if it makes sense.

How Correa Realty Group helps you win with these strategies

This is exactly where having a strategy-first agent team matters. We help you identify assumable loan opportunities, structure strong—but clean—offers with seller credits, and coordinate with lenders so buydowns are compliant and properly documented. If you’re buying in Garden Ridge, New Braunfels, Spring Branch, or nearby, we’ll help you compare options apples-to-apples and negotiate the path that fits your budget and timeline.

FAQs

Are assumable mortgages hard to do?
They can take longer than a standard purchase because the servicer must approve the assumption and process paperwork. FHA/VA assumptions often have clearer pathways than conventional.

Can I assume a VA loan if I’m not a veteran?
Sometimes yes, but it can impact the seller’s VA entitlement unless there’s a substitution of entitlement. Always coordinate this carefully.

Do seller credits reduce the price of the home?
Not directly. They reduce your cash-to-close or fund allowed costs/buydowns, depending on loan guidelines. Limits vary by loan type.

Can I get cash back from a seller credit?
Typically no—credits must be applied to allowable costs; unused amounts may have to be reduced/restructured.

Is a temporary buydown the same as buying discount points?
Not exactly. Discount points permanently reduce the rate; a temporary buydown subsidizes payments for a set period, while the note rate stays the same.

Do I qualify based on the lower buydown payment?
Usually lenders qualify you at the note rate, not the reduced initial payment.

What’s the best option right now?
It depends on inventory, the specific home, your cash position, and your timeline. A quick consultation can clarify the best lever for your situation.