New Construction & Builder Incentives: Real Savings Every Buyer Should Know

 

What builder incentives are available right now, and how much can they actually save you — on interest rates, closing costs, upgrades, title/survey fees, and more?
As a Realtor with 18 years helping buyers in the San Antonio market, I break down current promotions, real examples of value, and practical savings estimates so you can see what these incentives are worth and how they work in real life.

1) Interest Rate Buydowns — What They Are & Who’s Offering Them

Interest rate buydowns are among the most powerful incentives because they can lower your monthly mortgage payment — either temporarily or permanently — by having the seller (the builder) pay discount points. (loganwalter.com)

Current Builder Examples

M/I Homes (Greater San Antonio)
• Offers a 3‑2‑1 rate buydown on select quick move‑in and to‑be‑built homes, with the first year rate as low as 1.875% if closed by the promotion deadline. (https://www.mihomes.com)

Lennar (San Antonio Area)
• Lennar’s Inventory Closeout Sales have included promotional FHA rates (~3.99%) plus paid discount points when financing through Lennar Mortgage. (Lennar)

Taylor Morrison
• In the San Antonio area, Taylor Morrison has been advertising up to 2‑1 buydown programs (which lower rates 2% first year and 1% second year). (Sharp Realty Group)

 Why it matters: Lower percentage points can add up to thousands saved annually — especially in the first years of your mortgage when payments would otherwise be highest. (loganwalter.com)

2) Closing Cost Credits — Reducing Cash to Close

Builder closing cost assistance can significantly reduce how much money you must bring to the table at closing — covering things like lender fees, title insurance, surveys, taxes, and prepaid insurance. (Tami Price)

Current Builder Examples

Perry Homes (San Antonio Year‑End Sales Event)
• Offers up to $35,000 in total incentives, including closing cost coverage and buydown credits — tied to using builder’s preferred lender. (Perry Homes)

M/I Homes
• Typical incentive packages include up to $6,000 toward closing costs on select homes when paired with their rate buydown. (https://www.mihomes.com)

Lennar
• Provides up to $5,000 in closing cost credits on inventory and move‑in ready homes financed through Lennar’s preferred lender. (Lennar)

 Common market practice: Builders contribute between 2% to 6% of the purchase price toward these costs in competitive markets. (Tami Price)

3) Free or Discounted Upgrades & Appliance Packages

Builders often bundle upgrades or appliances — from premium countertops to stainless steel kits — as incentives to add value without raising the home price.

Current Builder Examples

M/I Homes
• Through promotions like their “On the House” package (in some markets), they combine rate buydowns with paid design upgrades including stainless steel appliances. (Builder Magazine)

Lennar
• Many Lennar promotions include appliance packages or design center credits layered with closing cost concessions. (Lennar)

VA‑Targeted Offers (Across Builders)
• In the San Antonio area, builders such as Lennar, M/I, and Perry offer upgrade credits (granite, smart tech, etc.) specifically for VA buyers — sometimes tied to closing cost and rate programs. (Levi Rodgers Real Estate Group)

 What you save: Upgrade credits often range $3,000–$10,000+ depending on builder and community. (NewHomeSource)

4) Title Policy & Survey Coverage — Hidden Savings Most Buyers Miss

Title fees, surveys, and prepaid items easily add $1,500–$3,000+ in out‑of‑pocket costs. Builders will often include coverage of these items as part of closing cost credits or specific line‑item perks. (NewHomeSource)

Current Builder Examples

• Perry Homes credits may include prepaid items such as title fees when buyers close by promotion deadlines. (Perry Homes)
• Lennar’s closing cost offers routinely cover title policy charges when financed through Lennar Mortgage. (Lennar)
• M/I Homes closing cost help is designed to include lender/title items as part of bundled incentives. (https://www.mihomes.com)

5) Price Cuts, Lot Premium Discounts & Spec Home Deals

In addition to traditional credits, many builders are offering price reductions, waived lot premiums, or half‑off design options on spec homes — especially as inventory ages. (NewHomeSource)

Current Builder Examples

Davidson Homes
• Offers closing cost help (e.g., 6% on quick move‑ins) plus half‑off lot premiums or free covered patios on certain builds. (NewHomeSource)

M/I Homes
• In some markets buyers closing by end of year receive price perks in addition to buydowns and closing cost help. (NewHomeSource)

Various Builders (General Market)
• Nationally, price reductions and price cuts (average ~5% in some regions) are part of incentive strategies. (Jet Direct Mortgage)

Estimated Savings by Price Point

Here’s a table illustrating typical builder incentive savings (closing cost credits + buydown value + upgrade/appliance credits) you might expect at different price tiers — based on current programs and standard incentive structures:

Price Point	Closing Cost Credit	Rate Buydown Value†	Upgrade/Appliance Credits	Total Estimated Savings
$250,000	$7,500 (3%)	$5,500*	$4,000	~$17,000+
$500,000	$12,500 (2.5%)	$10,000*	$6,000	~$28,500+
$750,000	$15,000 (2%)	$14,500*	$8,000	~$37,500+
$1,000,000	$20,000 (2%)	$19,500*	$10,000	~$49,500+

† Rate Buydown Value is an estimate of how much the builder‑paid discount points or temporary buydown could save you in monthly payments over the first few years compared to standard market rates — actual savings vary by loan type, interest environment, and buyer qualification. (https://www.mihomes.com)

Key Takeaways for Buyers

• Compare APRs, not just promo rates — a “low rate” incentive might be temporary or have trade‑offs if not tied to your long‑term financing. (Kiplinger)
• Preferred lender requirements are common — most top incentives require you to use the builder’s lender to unlock full value. (Tami Price)
• Full value requires close timing and agent negotiation — incentives often come with deadlines or closing parameters.

Bottom Line

Builder incentives are more robust than they’ve been in years — from rate buydowns and cash credits to premium upgrades and price concessions — and with the right guidance, buyers can save tens of thousands of dollars on new construction purchases. (Realtor)