Updated November 4, 2026
What incentives look like
Builders may offer help with closing costs, a lower interest rate through a buydown, design upgrades or appliances. Offers change, and the best ones are often tied to a condition, such as using a specific lender or closing by a certain date.
Get the details in writing
Ask for the incentive in writing, including the dollar value, what it can be used for, any deadline, and whether it depends on your lender. Ask if it is still available if your mortgage loan is not through the builder's lender. Verbal promises from the sales office are hard to enforce.
What federal law says
The Real Estate Settlement Procedures Act (RESPA) covers settlement services. One section, 12 U.S.C. 2608, says a seller of property bought with a federally related mortgage loan cannot require, directly or indirectly, as a condition of the sale, that you buy title insurance from any particular title company. A seller who violates it is liable to the buyer for three times the charges for the title insurance.
The Consumer Financial Protection Bureau also treats requiring someone to use a particular provider of settlement services as a type of referral. Incentives for using a builder's preferred or affiliated lender are treated differently and are commonly offered as optional. Because the rules for lenders are more detailed, ask your attorney or lender if you are unsure.
Compare, don't assume
An incentive only helps if the total deal is competitive. Request a loan estimate from the preferred lender and at least one other. Compare interest rate, APR, lender fees, and total cash to close with the incentive applied. If the builder's lender charges more, the incentive may be worth less than it looks.
A rate buydown may also be temporary. Ask what the payment is after any buydown ends.
Your agent's role
A buyer's agent can ask the builder about the terms behind an incentive, compare offers across communities and make sure the contract reflects what was promised. Many builders require agents to be registered on your first visit, so bring yours early if you want help negotiating.
Questions to ask the sales office
- Is this incentive tied to using a specific lender or title company?
- What happens to the incentive if I use a different lender?
- Does the price of the home change when I do not take the incentive?
- When does the incentive expire?
- Is it written into the contract or only in a separate flyer?
Keep copies of anything you rely on. If an offer sounds unclear, ask your agent, lender or attorney to review it before you commit.
Watch the timeline
New-construction closings can be months away. If your loan terms or rate lock are tied to the builder's schedule, a delay might cost you. Ask how long a rate lock lasts, whether extensions cost money, and who pays if completion slips. These details matter as much as the headline incentive.
Title companies and closing agents
Because 12 U.S.C. 2608 addresses title insurance specifically, ask whether the builder expects you to use a certain title or closing company. If the builder says you must use a particular title company as a condition of selling the home, ask for that in writing and speak to an attorney. If the builder simply recommends one, you can still ask for quotes from others and compare fees.
Closing costs in Florida include several line items, so ask for a written estimate that lists each fee.
Do the math on total cost
Add up the price, upgrades, lot premium, estimated closing costs, HOA dues, any CDD assessment, property taxes and insurance. Then compare that total with and without the incentive. A smaller incentive paired with a better loan can beat a bigger one tied to higher costs. Ask your agent to help you build a side-by-side comparison, and give yourself time to decide.
Frequently asked questions
Can a builder make me use its lender?
A seller cannot require a particular title company under federal law. Lender incentives are usually optional, so ask whether any benefit is conditional and what happens if you choose another lender.
Should I get a second loan estimate?
Comparing at least two is a sound habit. It shows you whether the incentive offsets any higher costs.
Do incentives change the price of the home?
Sometimes the price stays the same and the value is given as credits. Ask how incentives are shown in the contract and on your closing documents.