Temporary Buy Downs & ARM Loans

Bridging the affordability gap

When today's rates feel out of reach, a temporary buy down or an adjustable-rate mortgage can be a smart bridge — lowering your payment now while you grow into the loan, wait for rates to improve, or plan for a future sale.

Temporary buy downs
3-2-1 buy down — rate is reduced 3% in year one, 2% in year two, 1% in year three, then fixed at the full rate
2-1 buy down — rate is 2% lower in year one, 1% lower in year two, then fixed
1-0 buy down — rate is reduced 1% in year one, then fixed
Buy down cost is often paid by the seller as a concession — at no cost to you
Buys breathing room to grow into the full payment over time
ARM loans as a strategy
5/1, 7/1, and 10/1 ARMs offer lower fixed rates for an initial period
Ideal for buyers who plan to sell or refinance within 5–10 years
Smart hedge during inflationary periods — lower initial rate with the expectation of refinancing when rates fall
Can meaningfully lower your monthly payment compared to a 30-year fixed
2-1 Buy Down Example

On a $400,000 loan at a 6% note rate:

Year 1 (4% rate)~$1,910/mo
Year 2 (5% rate)~$2,147/mo
Year 3+ (6% rate)~$2,398/mo

* Payments reflect principal and interest only, shown for comparison purposes. Taxes, insurance, and mortgage insurance are not included. Actual payment will vary.

The buy down cost is the difference in payments — typically funded by the seller at closing. We'll show you exactly what makes sense for your scenario.


Quick Facts
Min. down payment3.5%
Min. credit score580
Mortgage insuranceRequired
Property typePrimary residence
Best forFirst-time buyers
FHA Loans

Built for first-time buyers

FHA loans are government-backed and designed for buyers who may not qualify for conventional financing. Lower credit requirements and a smaller down payment make this the most common starting point for first-time homebuyers.

Key benefits
Down payment as low as 3.5%
Flexible credit score requirements (580+)
Sellers can cover up to 6% of closing costs
Available for purchase and refinance

VA Loans

A benefit you've earned

VA loans are one of the most powerful mortgage products available. If you've served in the military, you may be eligible to buy a home with no down payment and no private mortgage insurance — a benefit few other programs can match.

Key benefits
Zero down payment required
No private mortgage insurance (PMI)
Competitive interest rates
Limited closing costs per VA guidelines
Benefit can be reused multiple times
Quick Facts
Down payment$0 required
PMINone
Funding feeVaries by use
EligibilityVeterans & military
ReusableYes

Quick Facts
Down payment$0 required
Min. credit score640 (guideline)
Mortgage insuranceAnnual fee (lower than FHA)
Property locationUSDA-eligible areas
Income limitsApply by household size
Best forRural & suburban buyers
USDA Rural Loans

USDA Rural zero down payments in rural areas

USDA loans are one of the only remaining zero-down mortgage options available to everyday buyers. If the home is in an eligible rural or suburban area and your income is within program limits, you may qualify for 100% financing with no down payment at all.

Key benefits
Zero down payment required
Lower mortgage insurance than FHA
Competitive 30-year fixed rates
Closing costs can be rolled in if appraised value allows
Available in many Utah & Colorado communities

Down Payment Assistance

Get into a home with little to nothing down

Down Payment Assistance (DPA) programs pair a first mortgage with a second loan or grant that covers the down payment — letting qualified buyers purchase with zero or near-zero out of pocket. The most common structure combines an FHA first loan (requiring 3.5% down) with a DPA second that covers exactly that 3.5%, eliminating the down payment entirely.

Key benefits
Zero down payment when combined with FHA first mortgage
Second loan covers the 3.5% FHA down payment requirement
State and local programs available in Utah & Colorado
Some programs offer forgivable or deferred second loans
Can be combined with seller concessions to cover closing costs too
How It Works
1st loanFHA (96.5%)
2nd loan (DPA)3.5% — covers down payment
Out of pocket$0 down possible
Income limitsMay apply
Best forFirst-time & low-down buyers

Quick Facts
Min. down payment3–5%
Min. credit score620
PMIUntil 20% equity
Property typesPrimary, secondary, investment
Best forQualified buyers
Conventional Loans

Flexible, competitive, and widely available

Conventional loans aren't government-backed, which means more flexibility in property type and loan structure. They're the most common mortgage for qualified buyers with solid credit and stable income.

Key benefits
Down payment from 3% for first-time buyers
PMI drops off once you hit 20% equity
Works for primary, secondary, and investment properties
Fixed and adjustable rate options

Jumbo Loans

For Utah's premium properties

When a home's price exceeds the conforming loan limit, a jumbo loan fills the gap. Ridge specializes in finding competitive jumbo financing for Utah's higher-value markets — with rates often closer to conventional than you'd expect.

Key benefits
Finance properties above conforming limits ($832,750)
Competitive rates from multiple wholesale lenders
Fixed and adjustable rate options
Primary, secondary, and investment properties
Quick Facts
Loan minimum$832,750+
Min. down payment10–20%
Min. credit score700
Reserves requiredYes
Best forHigh-value properties

Is it worth refinancing?

A general rule of thumb: if you can reduce your rate by 0.5% or more and plan to stay in the home for 2+ more years, refinancing usually makes financial sense.

Get a free savings estimate
Refinancing

Could you be saving money every month?

If your current rate is above market, or if you've built meaningful equity, refinancing might lower your payment, shorten your term, or put cash in your pocket. We'll run the numbers honestly and tell you if it makes sense.

Refinancing options
Rate & term — lower your rate and/or change your term
Cash-out — access equity for renovations, debt, or investment
FHA & VA streamline options for existing government loans
Remove PMI once you reach 20% equity

Investment Property

Build your portfolio

Whether you're buying your first rental or growing a multi-unit portfolio, Ridge has financing built for real estate investors. We know the numbers matter, and we help you move fast when the right deal appears.

Key benefits
DSCR loans — qualify on rental income, not personal income
Conventional investment loans for 1–4 unit properties
Fast pre-approval to compete with cash offers
Great for self-employed investors
Quick Facts
Loan typesDSCR, Conventional
Units1–4
Min. down payment20–25%
DSCR qualificationProperty cash flow
Best forLandlords & investors

Not sure which
loan is right for you?