What Could a 4% Buyer Incentive Mean for Your New Home?

What Could a 4% Buyer Incentive Really Mean for Your New Home?

For a limited time, Nilson Homes is offering a 4% buyer incentive on eligible homes that go under contract before the end of 2026. Discover how this incentive could help lower your monthly mortgage payment, reduce upfront costs, and make your next home more affordable.

Buying a new home is one of life's biggest investments, and at Nilson Homes, we believe finding the right home should come with the right opportunities.

That's why we're offering a 4% buyer incentive on eligible Nilson Homes that go under contract between now and December 31, 2026. This limited-time offer applies to our homes across our communities, excluding Starter Homes.

But what does a 4% incentive actually mean? And how can you put it to work?

The answer might surprise you.

First, How Much Is 4% Really Worth?

When you're purchasing a home, 4% can represent a significant amount of money. And because the incentive is calculated using your home's purchase price, the potential value increases with the price of the home.

Here's what that looks like at different price points:

Home Price	4% Buyer Incentive
$400,000	$16,000
$500,000	$20,000
$600,000	$24,000
$700,000	$28,000
$790,000	$31,600

That's thousands of dollars in potential financing assistance that could make your new home more affordable.

Rather than simply looking at the dollar amount, let's explore what that incentive could actually do for you.

Option 1: Lower Your Mortgage Rate for Years to Come

One of the most powerful ways to use a buyer incentive is through a permanent mortgage interest rate buydown.

By applying eligible incentive funds toward mortgage discount points, you may be able to secure a lower interest rate for the life of your loan.

And even a seemingly small reduction in your mortgage rate can make a big difference in your monthly payment.

What Could a Lower Rate Save You?

Let's look at a hypothetical $600,000 home with a 20% down payment and a 30-year fixed mortgage.

Interest Rate	Monthly Principal & Interest
7.5%	$3,356
7.0%	$3,193
6.5%	$3,034

Reducing the rate from 7.5% to 6.5% could mean:

• Approximately $322 less per month
• Approximately $3,867 in annual savings
• More than $38,600 in payment savings over 10 years

Imagine what an extra $322 each month could mean for your family.

Whether that's more money for savings, family adventures, or simply a little extra breathing room in your monthly budget, the impact can be substantial.

And unlike a temporary rate buydown, a permanent rate buydown lowers your interest rate for the life of your mortgage, provided you keep that loan.

These figures are hypothetical illustrations, not advertised financing offers. Actual rates and discount point costs depend on lender pricing, buyer qualifications, and market conditions. A 4% incentive does not guarantee a 1% rate reduction. Payments exclude property taxes, insurance, and HOA fees.

Option 2: Enjoy Lower Payments During Your First Two Years

What if you could ease into your mortgage payments while settling into your new home?

A temporary mortgage rate buydown, such as a 2-1 buydown, may allow you to do exactly that.

With a 2-1 buydown, your monthly mortgage payment is calculated using an interest rate that's two percentage points lower during your first year and one percentage point lower during your second year. In year three, your payment returns to the full mortgage note rate.

What Could a 2-1 Buydown Look Like?

Using the same hypothetical $600,000 home with 20% down and a $480,000 mortgage at a 7.5% note rate:

Loan Period	Payment Rate	Monthly Principal & Interest
Year 1	5.5%	$2,725
Year 2	6.5%	$3,034
Year 3 onward	7.5%	$3,356

That's approximately $631 less per month during your first year!

Over the first two years, the temporary buydown in this example could provide approximately $11,400 in total payment assistance.

Think about what that could mean as you settle into your new home. Whether you're purchasing furniture, landscaping your yard, or adjusting to a new budget, having lower payments during those first two years can provide valuable flexibility.

A temporary buydown may be especially appealing to buyers who want to reduce their initial housing expenses without waiting to purchase a home.

It's important to remember that the reduced payments are temporary. Your mortgage still carries the full 7.5% note rate, and your payment will increase according to the buydown schedule. Buyers must qualify under applicable lending requirements, and refinancing at a lower rate in the future is not guaranteed.

Option 3: Reduce Your Upfront Closing Costs

Your down payment isn't the only expense to consider when purchasing a home.

There are also closing costs, which can include:

• Loan origination and lender fees
• Appraisal fees
• Title and settlement services
• Prepaid homeowners insurance
• Prepaid property taxes
• Other eligible closing expenses

Depending on your financing program, a portion of your 4% buyer incentive may be used to help cover these costs.

For example, on a $500,000 home, a 4% incentive represents $20,000 in potential assistance.

Rather than paying all eligible closing expenses out of pocket, you may be able to use incentive funds to cover some or all of those costs, subject to lending guidelines.

That could mean keeping more of your hard-earned savings in your bank account.

Whether you're planning to furnish your new home, build your emergency fund, or simply maintain financial flexibility, reducing upfront expenses can be a major benefit.

Option 4: Combine the Benefits

Here's where things get especially interesting.

Depending on your loan program and lender guidelines, you may be able to divide your available incentive between multiple eligible financing expenses.

For example, on a $600,000 home, your potential 4% incentive would equal $24,000.

You might be able to use a portion of that incentive toward eligible closing costs and apply the remaining funds toward a permanent mortgage rate buydown.

This approach could help you accomplish two important goals at once:

Reduce the amount of cash needed at closing while also lowering your monthly mortgage payment.

Instead of choosing between upfront savings and long-term affordability, you may be able to enjoy some of both.

Your lender can help determine which combination provides the greatest benefit for your financial situation and how much of the available incentive can be used under your loan program.

Which Option Is Best for You?

There's no one-size-fits-all answer.

The best way to use your 4% incentive depends on your financial goals, your loan program, and what matters most to you.

If your priority is a lower long-term monthly payment: A permanent mortgage rate buydown may be worth exploring. Lowering your interest rate can reduce your monthly payment for as long as you keep that mortgage.

If you want lower payments during your first two years: A temporary 2-1 buydown could provide additional financial flexibility as you settle into your new home.

If preserving your savings is most important: Applying eligible incentive funds toward closing costs could help reduce your upfront expenses.

If you want a balance of both: Combining eligible closing cost assistance with a mortgage rate buydown may provide a solution that fits your needs.

The important thing is understanding your options and working with a knowledgeable lender to determine how the available incentive can best benefit you.

Why Wait? Your Next Home Could Be More Affordable Than You Think.

At Nilson Homes, we're committed to helping buyers find not just a beautiful home, but a smart path to homeownership.

We understand that interest rates and monthly payments play a major role in the homebuying decision. That's why we're excited to offer this limited-time opportunity to help buyers make their next move.

With a 4% buyer incentive available on eligible Nilson Homes that go under contract by December 31, 2026, now could be a great time to explore the homes and communities you've had your eye on.

Whether you're looking for more space, a new neighborhood, or a home that better fits your lifestyle, our team is ready to help you understand what's possible.

Ready to See What 4% Could Mean for You?

Your next home could come with thousands of dollars in potential financing assistance.

Explore our available homes, find the community that's right for you, and connect with the Nilson Homes team to learn how our year-end buyer incentive could help make your next move possible.

DON'T MISS OUT. 
ELIGIBLE HOMES MUST GO 
UNDER CONTRACT BY 
DECEMBER 31, 2026, TO QUALIFY.

Important Incentive Details

The 4% buyer incentive applies to eligible Nilson Homes placed under contract during the promotional period ending December 31, 2026. Starter Homes are excluded. Incentive amounts are calculated as 4% of the eligible home's purchase price. Actual use of incentive funds is subject to loan program restrictions, lender approval, seller contribution limits, and eligible financing or closing costs. Not all buyers may qualify to use the full 4% incentive. Incentive funds cannot be used as cash back or directly toward the buyer's required down payment. Financing examples are hypothetical and are provided for educational purposes only. They do not represent guaranteed mortgage rates, payments, or savings. Actual financing terms and incentive availability may vary. Contact Nilson Homes for complete promotional details and consult your lender regarding available financing options.