Guide
Can I take the incentive as cash instead of a special rate?
Usually not automatically. A builder’s special mortgage rate is a financing offer, not money you can pocket. Some builders do publish a flex cash or closing-cost credit as the alternative. That choice is the one worth checking in writing before you sign.
What the special rate actually is
When Lennar, Perry Homes, Pulte, Highland Homes, D.R. Horton, Taylor Morrison, Meritage Homes, or David Weekley Homes advertise a rate below the open market, they are usually buying down the loan through their affiliated lender. The value shows up as a lower monthly payment, not as cash at closing. You cannot convert that buydown into a check just because you brought your own lender.
When cash is a real option
Look for language like this on the builder’s own site:
- Flex cash, seller credit, or a dollar amount toward closing costs
- An either/or: promotional financing or a credit, not both
- A cap, an expiration date, and which communities or inventory homes qualify
Perry Homes, for example, often frames promotions as flex cash versus promotional financing. Other builders bury the cash path in a footnote or only offer it on quick-move-in homes. If the page only lists a rate, assume cash is not on the table until the sales office confirms it.
Illustration, not a live offer
On a $500,000 home with 20% down, a $25,000 flex-cash credit cuts cash to close from about $112,500 to about $87,500. A 5.49% promotional rate instead of 6.50% leaves cash to close unchanged but drops principal and interest from about $2,528 a month to about $2,269. Which wins depends on how long you keep the loan and how tight cash is at closing.
How to choose
- Take the cash path if you need a lower cash-to-close or you plan to refinance soon.
- Take the rate path if you will keep the loan for years and the payment savings beat the credit you would give up.
- Get both options in writing, with the lender requirement stated, then compare a Loan Estimate from the builder’s lender with one from outside.
BuilderPerk can look up which of those paths a tracked builder is publishing right now. Offers change by community and expire.
Illustration uses a $500,000 price, 20% down, 2.5% closing costs, and a 6.50% market rate. Not a quote, not advice. Coverage is limited to tracked US builders. BuilderPerk is a search tool for new-home buyer incentives, not a supplier loyalty program.