What Is Builder Incentive?
A builder incentive is a discount, upgrade, or credit — such as covering closing costs or offering a rate buydown — offered by a new-construction builder to encourage a buyer to purchase.
Example
A builder might offer $15,000 toward closing costs and design-center upgrades if the buyer uses the builder's preferred lender.
Why It Matters
Incentives are usually only available if you use the builder's preferred lender and title company — always compare the total package against an outside lender's rate and fees before deciding.