Builders across the Huntsville area are offering incentives to win qualified buyers. They're real money — but only if you pick the right mix and read the whole structure.
The common incentives
- Closing costs paid — the builder covers some or all of your lender and title costs.
- Temporary buydown — a lower rate for the first year or two, then the full note rate.
- Permanent buydown — points paid to lower your rate for the life of the loan.
- Upgrade credits — flooring, counters, appliances, blinds, fences.
- Price reductions — especially on quick-move-in homes.
How to read a buydown — the whole thing
A temporary buydown should always be described in full: every year's rate, and the rate it lands on. A full 30-year rate is simpler, and this month it's the best deal available. Here's what it means in payments:
As low as 4.99% on new construction
Huntsville-area builders are paying to bring rates down right now. The best offers this month are a full 30-year rate, not a temporary buydown:
That difference is hundreds of dollars a month, every month. See every current deal.
Rates and APRs are quoted by each builder's preferred lender, require qualification, and can change or end at any time. Not a rate quote or offer of credit.
Monthly payment vs. market rate
$300,000 home · FHA, 3.5% down · full monthly payment incl. est. taxes, insurance & mortgage insurance
$400,000 home · FHA, 3.5% down · full monthly payment incl. est. taxes, insurance & mortgage insurance
$500,000 home · FHA, 3.5% down · full monthly payment incl. est. taxes, insurance & mortgage insurance
| Home price | Market 7.5% | Builder rate 4.99% | Saved per month | Saved per year | Saved, first 5 years |
|---|---|---|---|---|---|
| $300,000 | $2,454 | $1,890 | $564 | $6,766 | $33,832 |
| $400,000 | $3,222 | $2,498 | $724 | $8,688 | $43,442 |
| $500,000 | $3,991 | $3,106 | $884 | $10,611 | $53,054 |
Estimates for a 30-year fixed FHA loan with 3.5% down and the 1.75% upfront mortgage insurance premium financed. Every payment shown includes principal, interest, monthly FHA mortgage insurance, and estimated property taxes and homeowners insurance; HOA dues are not included. Market comparison at 7.5%. Builder rate 4.99% (5.299% to 5.502% APR depending on builder and loan program, as quoted by the builders' preferred lenders). *30-year total assumes the loan is kept for its full term with no refinance. Incentives and rates change and depend on the builder, lender, loan program and your qualifications. Not a rate quote or offer of credit.
With a temporary buydown, year one is the lowest payment, but the rate it lands on is the payment you'll live with. Compare every offer on that number and on its APR.
The preferred-lender string
Most incentives require using the builder's preferred lender and sometimes title company. That can be fine — just compare the lender's rate and fees against an outside quote so the incentive isn't offset elsewhere.
Which incentive is worth the most?
It depends on how long you'll keep the loan, how much cash you have, and whether you plan to refinance. Short on cash to close? Closing costs may win. Staying long-term? A permanent buydown may win. I'll run the options side by side.
Get your range on the affordability calculator, then read why to bring your own agent.