New-Home Incentives: Who Benefits More — Buyer or Builder’s Affiliate?:

If you have shopped for a newly built house in recent years, you have probably run into this: The builder offers you a substantial incentive — a finished patio, extra square footage or lush landscaping — if you agree to obtain your mortgage, and maybe your title and settlement services, through an affiliate of the builder.


Ryan Homes is building a couple of developments in Louisa and Fluvanna Counties and is offering exactly what is described. It seems to benefit my clients, so I will fight to ensure that they get what is being offered.

To the extent that lenders pass along discounted fees or offer preferred rates to builder partners, builder financing incentives to buyers may in fact represent true savings.