Austin new construction deals
Builder Rate Buydowns in Austin
The biggest incentive in the market, and the easiest one to misread
The short answer
A rate buydown is the builder paying your lender to lower your mortgage rate, and it is the largest single incentive in Austin new construction. There are two kinds that are advertised in nearly the same words: a permanent buydown lowers your rate for the life of the loan, while a temporary 2-1 buydown lowers it for the first two years and then steps back up. Buydowns are almost always tied to the builder's own mortgage company, and a permanent one usually beats an equal price cut if you keep the loan past about five years.
Builder incentives can change at any moment.
Builders add, cut and pull offers without notice, and what applies varies by community and by individual home. Anything shown here is a snapshot, not a quote, and it may already be out of date by the time you read it. Reach out to me for the latest and I will confirm what is actually on the table this week, including offers that are never advertised.
Offers below last reviewed October 14, 2026.
Ready to see actual homes?
Current inventory with pricing, updated by the builders themselves. Incentives change constantly, so ask me what applies to a specific home.
Where the discount actually comes from
- Builders protect the sales price because a recorded price cut lowers the comparables for every home they still have to sell. Paying your lender instead does not show up in the sale price, so it is the concession they prefer to give.
- The builder's own mortgage company is how they deliver it. That is why the headline rate usually requires financing through them, and often their title company too.
- A buydown costs the builder points up front. The more inventory pressure they are under, the more points they are willing to buy, which is why the lowest advertised rates tend to sit on completed homes near a quarter end.
- Adjustable products let them advertise a lower number. An ARM that is fixed for five or seven years can be offered at a noticeably lower starting rate than a 30-year fixed for the same cost to the builder.
How to tell a real deal from a marketed one
- Ask whether it is permanent or temporary. A 2-1 buydown and a permanent rate buy are advertised in nearly identical language and are worth very different amounts.
- Ask which loan product the rate applies to. A 30-year fixed, an FHA fixed and a 7/6 ARM can all be advertised in the same email, and the lowest number is usually the ARM.
- Read the assumptions under the rate. Builder rate examples usually assume an excellent credit score, a large down payment and a primary residence. If those are not you, the rate you get will be higher.
- Get a complete Loan Estimate from the builder's lender and from an outside lender on the same day, and compare total cost including fees, not the advertised rate.
- Check the lock and close deadline. Rate offers carry dates, and the lowest ones are often first come first served.
What to watch for
- A temporary buydown means your payment rises in year two or three. Budget for the full note rate, not the teaser.
- An ARM means your rate can change after the fixed period. It can be the right product if you expect to sell or refinance before then, and the wrong one if you do not.
- A tied loan can carry higher fees that recover part of the buydown. The rate alone does not tell you whether the builder's loan is actually cheaper.
- If you refinance or sell early, you lose the rest of the buydown's value. A price reduction keeps working after a refinance; a buydown does not.
- I can explain how these work and push for a better package, but I am not your lender. Have a licensed loan officer confirm the numbers for your situation.
What is on the table right now
5 percent toward closing costs, with an owner's title policy included.
On eligible homes. Lennar states that incentives are subject to change and vary by home, and that its offers may require using its designated lender or closing agent. Ask me which homes qualify.
Confirmed 2026-10-02 · Email from a Lennar Austin new home consultant
Rates as low as 3.99 percent (5.362 percent APR) on a 7/6 ARM, fixed for the first seven years.
Through Pulte Mortgage. Their published example assumes a 780 FICO, a primary residence and 20 percent down, with all incentives applied toward closing costs; the rate adjusts every six months from year eight. Pulte states the rate was effective 9/17/2026, that loans must be locked and closed by 12/31/2026, and that it is offered first come first served. An ARM is not the right product for everyone — ask me to price it against a fixed rate before you decide.
Confirmed 2026-09-18 · Pulte Homes Central Texas email
4.99 percent (5.76 percent APR) FHA 30-year fixed rate with as little as 3.5 percent down on select quick move-in homes.
Through Toll Brothers Mortgage Company, for buyers who sign on a select quick move-in home on or after 9/4/2026 and close by 10/30/2026. Toll's published example assumes a $509,224 price and a 660 minimum credit score; limited availability and subject to change. Toll is also running a National Sales Event for deposits 10/3 to 10/18 with savings that vary by home.
Confirmed 2026-10-13 · Toll Brothers emails, 10/3 and 10/13/2026
Year End Sales Event: choose up to $50,000 in flex cash or a 5.49 percent rate (6.278 percent APR, 30-year fixed), plus a move-in package.
On qualifying inventory homes, which must close by 12/31/2026. Perry has also cut prices on inventory homes near Georgetown.
Confirmed 2026-10-03 · Email from a Perry Homes Austin new home sales counselor
Up to $60,000 in flex cash plus a 1-0 rate buydown on to-be-built homes, or a 4.99 percent first-year rate on quick move-in homes.
To-be-built: contracts from 10/8 to 10/31/2026 that can close by 5/31/2027; flex cash goes to design options or closing costs. Quick move-in: 4.99 percent in year one, then 5.99 percent fixed for years 2 to 30 (6.032 percent APR, conventional), on homes that can close by 12/4/2026; an FHA/VA rate is also offered, so ask me for that number. Both require financing through Highland HomeLoans, funds are limited, and they cannot be combined with other offers.
Confirmed 2026-10-14 · Highland Homes email, 10/14/2026
Red Tag Event, 10/9 to 11/1/2026: special pricing on select homes, plus up to $10,000 in closing costs with DHI Mortgage.
Contracts during the event must close by 12/27/2026; first come, first served. The closing cost credit cannot exceed 2 percent of the final sales price and requires DHI Mortgage. Incentives vary by community and home.
Confirmed 2026-10-02 · D.R. Horton Austin Division email
Below-market rates and up to $10,000 in closing costs on select quick move-in homes, contracts through 10/15/2026.
Requires financing through MTH Mortgage and using Carefree Title. The closing cost credit cannot exceed 3 percent of the base price. Meritage does not publish a single rate; ask me for the number on a specific home.
Confirmed 2026-10-01 · Meritage Homes email
National Sales Event extended through 10/18/2026: savings on select quick move-in homes.
Applies to select inventory homes with contracts from 9/3 to 10/18/2026. Savings vary by home; in Coventry's own examples they ranged from $8,000 to $80,000.
Confirmed 2026-10-01 · Coventry Homes email
Up to 6 percent flex cash on qualifying homes, usable for a promotional rate as low as 4.5 percent (6.480 percent APR, FHA 5/1 ARM).
Flex cash can buy down the rate when you finance with Brohn's preferred lender, CMG Financial. Brohn's "hot homes" get an extra 3 percent flex cash toward closing costs. At Cross Creek (Cedar Park), the final homes get the choice of up to 6 percent flex cash or a reduced rate. The 4.5 percent rate is an adjustable-rate loan fixed for five years: ask me to price it against a fixed rate before you decide.
Confirmed 2026-10-10 · Brohn Homes Austin email (10/8/2026) and a Brohn sales executive (10/10/2026)
Answered
What is a builder rate buydown? ▾
It is the builder paying your lender, in points, to lower your mortgage interest rate. In Austin it is the single largest incentive builders offer, because unlike a price cut it does not lower the recorded sale price and therefore does not drag down the comparables for every other home they are selling. It is almost always tied to using the builder's own mortgage company.
Is a 2-1 buydown the same as a permanent buydown? ▾
No. A 2-1 buydown lowers your rate by two points in the first year and one point in the second, then returns to the full note rate for the remaining term. A permanent buydown lowers the note rate itself for the life of the loan. They are marketed in similar language and the permanent one is worth considerably more, so ask which one is on the table and get it in writing.
Is a rate buydown better than a lower price? ▾
It depends on how long you keep the loan. A permanent buydown usually wins if you hold the mortgage beyond roughly five years, because the monthly saving adds up. A price reduction wins if you expect to refinance or sell sooner, and it also lowers your property tax basis, which a buydown does not. Run both as a total cost over how long you actually expect to stay.
Do I have to use the builder's lender to get the buydown? ▾
In most cases yes, because the buydown is paid through their mortgage company. You can use any lender you want, but you will usually give up the buydown. Get a full Loan Estimate from both and compare the total cost including fees, because the builder's loan often does come out ahead, and you want to know by how much.
Keep exploring
Want to know what is actually discounted this week?
Tell me your budget and the areas you are considering. I will call the builders, find out which homes are under real pressure, and send you the short list.
Find out what is actually discounted
Pick a time. Tell me your budget and the areas you are considering, and I will come to the call with the homes that are genuinely under pressure right now.
What are you looking for?
Budget, areas, and roughly when you need to be in. I'll send you the homes that are actually discounted rather than the ones that are advertised.
Reviewed and updated September 23, 2026. Builder incentives change constantly — contact me for current terms.