Fairway's Home Budget Booster: A Lower Rate for Your First Year in Sioux Falls
Buying a home comes with more costs than the down payment. There are moving trucks, window blinds, a couch for the living room, and maybe a lawn mower for your first yard. For most buyers, the first year is when the budget feels tightest.
Rates have moved up and down a lot this year, which makes it hard to plan your payment. A lower payment in year one gives you some room no matter where rates land.
That is why Fairway's Home Budget Booster is back. For a limited time, eligible buyers can get a lender-paid temporary rate buydown that lowers their mortgage rate by .5% for the first 12 months. Here is how it works, what it could save you, and the dates you need to know if you are buying in Sioux Falls, Harrisburg, Tea, Brandon, or anywhere in the Sioux Empire.
What Is Fairway's Home Budget Booster?
The Home Budget Booster is a limited-time promotion from Fairway. When you qualify, Fairway pays to lower your interest rate by .5% for the first year of your loan. After 12 months, your rate goes back to the original rate you locked, and it stays there for the rest of the loan.
It is not a separate loan program. It is a benefit added to your loan when your application and rate lock fall inside the promotion window.
How a Temporary Rate Buydown Works
A temporary rate buydown lowers your interest rate for a set period at the start of your loan. Someone covers the difference between the lower payment and the full payment. You set that money aside at closing, and it fills the gap each month.
With many buydowns, the buyer or the seller pays that cost. The Home Budget Booster is lender-paid, so you do not pay for the lower first-year rate, and you do not pay it back later. In mortgage terms, this is called a .5/0 buydown: .5% off in year one, then your regular rate from year two on.
Not every loan product or scenario is eligible, so the first step is finding the right loan for your situation. If you are still weighing your options, you can compare loan programs in Sioux Falls before you talk with a loan officer.
What the Savings Look Like on a Sioux Falls Home
Here is what a .5% rate reduction could save on common loan amounts in the Sioux Falls market. Because rates change often, the savings are shown as ranges:
Estimates are for a 30-year fixed loan and show principal and interest savings only. Ranges reflect a variety of typical 30-year fixed rates; your exact savings depend on your loan amount, credit, and the rate you lock. Taxes, homeowners insurance, and mortgage insurance are not included.
Example: A First Home in Harrisburg
Say a young couple is buying a new build in Harrisburg with a $325,000 loan. With the Home Budget Booster, their principal-and-interest payment drops by roughly $103 to $110 a month for the first 12 payments, depending on the rate they lock.
That adds up to about $1,240 to $1,320 over the year. They use it to buy window blinds, put a snowblower in the garage before the first storm, and start rebuilding the savings they spent on closing. By year two, they are settled in and ready for the full payment.
Why a Lower First-Year Payment Helps
The first year in a new home is expensive in ways many buyers do not plan for. Here is where that extra room in the budget tends to go:
Setup costs: window coverings, appliances, and furniture for rooms you did not have before.
Winter costs: in the Sioux Empire, that can mean a snowblower and higher heating bills in January and February.
Savings: rebuilding an emergency fund after using cash for your down payment and closing costs.
Moving up: covering overlap costs if you are moving from a starter home in Tea or Brandon into something bigger.
A lower payment does not change what the home costs. It gives you breathing room during the months when surprises are most likely.
What Happens After the First Year?
After 12 months, your rate returns to the note rate you originally locked, and your payment goes up to the full amount. In the Harrisburg example, the payment moves from about $2,140 back to about $2,250.
Two things make this easier to plan for:
You qualify at the full rate. Your loan is approved based on the full payment, so the year-two payment should already fit your budget.
There is no payback. Because the lender pays the buydown, you won't have a catch-up payment or added balance. You simply pay the regular amount from year two on.
Good habit: Set a reminder for month 11 so the change isn’t a surprise. For other questions about how payments, escrow, and rates work, see our answers to common mortgage questions.
Key Dates: Apply and Lock Between October 1 and December 31, 2026
This promotion has firm deadlines. To be eligible:
Submit your application between October 1, 2026, and December 31, 2026.
Lock your rate by December 31, 2026.
Your loan must fund by February 28, 2027.
Your loan must close and fund with Fairway Home Mortgage.
Rates change frequently, so the sooner you know your numbers, the better you can plan your lock. The best way to be ready is to get pre-approved early. The Fairway Advantage Pre-Approval gives you a conditionally approved loan before you make an offer, so you can move quickly when you find the right home and lock inside the window.
Is the Home Budget Booster Right for You?
The Home Budget Booster tends to be a good fit for:
First-time buyers who want extra room while they set up their first home.
Growing families moving up to more space in Sioux Falls, Harrisburg, Tea, or Brandon.
Buyers purchasing a home that needs a few updates in the first year.
A few things to keep in mind:
Not every loan product or scenario qualifies. Your loan officer will confirm eligibility.
You can't combine it with other Fairway incentives or discounts.
Look at the whole loan, not only year one. Your rate, closing costs, and long-term payment matter most. The CFPB's guide to preparing to buy a home is a helpful place to start.
Talk to a Fairway Heartland Loan Officer
Our loan officers can run your numbers, show you what the Home Budget Booster could save on your loan, and help you time your application and rate lock inside the promotion window. We serve buyers across Sioux Falls, Harrisburg, Tea, Brandon, and Southeast South Dakota.
Not sure who to call? Meet our loan officers and find the right fit.
The window closes December 31, 2026. If you plan to buy this fall or winter, start the conversation now.
*Not all temporary buydown options are available for every product or scenario. Talk to your Fairway loan officer for more details. A .5/0 lender-paid temporary rate buydown will reduce the note rate by .5% for the first year of the term, after which the rate will revert back to the original note rate for the remainder of the term. Loan must close and fund with Fairway Home Mortgage. Eligible on applications submitted between 10/1/2026 and 12/31/2026 and locked by 12/31/2026. Must fund by 2/28/2027. Promotion expires 12/31/2026. Special incentive offer subject to change without notice. This offer not valid with any other incentives or discounts. Copyright 2026 Fairway Independent Mortgage Corporation doing business as Fairway Home Mortgage. NMLS#2289. 4750 S. Biltmore Lane, Madison, WI 53718, 1-866-912-4800. All rights reserved. This is not an offer to enter into an agreement. Not all customers will qualify. Information, rates and programs are subject to change without notice. All products are subject to credit and property approval. Other restrictions and limitations may apply. Equal Housing Opportunity.