Smart ways to save when buying new construction.
Why it matters: Investing in homeownership is a major financial endeavor that requires major planning and saving – from your down payment to closing costs. Fortunately, the many benefits of owning a home make the financial sacrifices of saving for it worthwhile.
Builder incentives can trim costs and make your monthly payments more manageable. From lower mortgage rates to discounted upgrades, asking the right questions upfront can pay off long term. Be savvy and look for common incentives including closing cost assistance, mortgage rate buydowns, upgrades, and price reductions.
Ways to Save
1. Special Financing & Preferred Lenders
Many builders partner with in-house or preferred lenders who offer:
Lower down payments: Helps you buy sooner or save cash for other priorities.
Discounted interest rates: Lock in below-market mortgage rates that can save tens of thousands over time.
Rate locks: Some programs let you lock a rate for months while your home is under construction.
One-stop convenience: Builders offer lender marketplaces to simplify the process and find competitive rates.
Ask this: What rate lock options or lender perks do you offer?
2. Help With Closing Costs
Closing costs can add thousands right at the finish line – but many builders help reduce or eliminate them.
Some cover them outright if you use their preferred lender.
Others offer credits that cut the amount due at signing.
Ask this: Can you help cover or reduce my closing costs?
3. Free or Discounted Upgrades
Upgrades can add up fast, but some builders offer:
Incentive packages with free or discounted luxury finishes.
Conditional perks if you close quickly or use their lender.
Allowance boosts for premium flooring, countertops, or fixtures.
Ask this:
What upgrades can I get at no cost or a reduced price?
Can I qualify for more if I close quickly or use your lender?
Bottom line
Builder incentives can cut the upfront cost and long-term expense of your new home. The key? Ask about every offer because not all incentives are advertised.
First-Time Homebuyer Resources:
How New Home Builders Help First-Time Home Shoppers Invest in Homeownership
20 Creative Ways First-Time Buyers Can Save for a Down Payment
Common Mistakes First-Time Homebuyers Make — And How to Avoid Them
See more at Newhomesource's articles for first-time homebuyers and follow us on Instagram and Facebook.
Sanda Brown
After graduating in 2016 from The University of Texas with a degree in English, Sanda Brown became a content writer for the BDX with a focus on website copy and content marketing. At the BDX, Sanda helps write and edit articles on NewHomeSource.com, writes website copy for builders, and manages a team of freelancers that work on additional content needs.