01
List every condition
Record the lender, title, closing date, loan type, deposit, upgrade, and occupancy requirements tied to the offer.
02
Price each alternative
Ask for written scenarios showing a credit toward costs, permanent rate buydown, temporary buydown, price reduction, or upgrades when available.
03
Model the holding period
Calculate how long payment savings take to recover added upfront cost or price. Include the possibility—but never the assumption—of a future refinance.
04
Check tax and insurance assumptions
New-construction estimates can initially reflect land or incomplete value and may understate future taxes. Obtain realistic insurance and CDD information for the finished home.
Frequently asked questions
Questions that add to the answer
Is a closing-cost credit equal to a price reduction?
No. They affect cash, loan amount, appraisal, and long-term cost differently.
Can unused incentive money be refunded?
Usually incentives can be used only as permitted by the contract, program, and actual costs.
Should upgrades be treated as free?
No. Compare their contract price, appraisal contribution, financing cost, and personal value.
Authoritative sources
Sources reviewed September 9, 2026
Program rules and public guidance can change. The current source and the review of the actual borrower, property, and transaction control.
Related resources