San Antonio New Home Builder Incentives & Closing Cost Offers

The common types of builder incentives

Closing cost credits cover some or all of your lender and title fees. Rate buydowns lower your interest rate, either for the life of the loan or for the first one to three years. Price reductions lower the contract price itself. Some builders also include upgrades or appliance packages instead of cash.

Temporary vs. permanent rate buydowns

A temporary buydown (often called a 2-1 or 1-0) lowers your rate for the first year or two, then it returns to the note rate. A permanent buydown lowers the rate for the whole loan. Always ask which one you're being offered and what the payment will be after the reduction ends.

Is the builder's lender required?

Many incentives only apply if you finance with the builder's affiliated lender and close by a deadline. That can still be a good deal, but compare the full loan estimate against an outside lender before deciding. We help you line them up side by side.

Ask for the offer's conditions in writing

Identify who qualifies, which homes are eligible, the required contract and closing dates, and whether using a preferred lender or title company is a condition. Ask whether the offer is a price reduction, credit, included upgrade or payment subsidy. These benefits are not interchangeable, and an advertised rate does not establish what you personally qualify for.

For a temporary buydown, request the payment schedule for every affected year and the payment after the subsidy ends. Confirm the loan's actual note rate and qualification requirements. For points or a permanent rate reduction, compare upfront cost with expected savings over the time you may keep the loan. A hoped-for future refinance should not be the basis for affordability.

Compare equivalent loan and purchase proposals

Ask the preferred lender and an outside lender for Loan Estimates with the same loan type, amount and timing. Review rate, annual percentage rate, lender fees, points, credits and cash to close, along with the purchase contract price. A large credit can be less compelling if other costs are higher or if you cannot use it for the expenses you actually have.

Have the lender explain program limits on credits and what happens to unused amounts; do not assume they can become cash back. Confirm whether changes to completion dates or loan approval affect the incentive. Keep the written offer and contract terms together. The linked searches help you explore advertised possibilities, but current terms need home-specific verification.