New Construction Incentives in San Antonio: Insider Tips from a USAF Veteran Realtor

Are you missing out on big builder deals? I'm Anthony Sharp – a USAF vet turned San Antonio Realtor® and Military Relocation Expert – and I've never seen incentives like this on new construction.

With high interest rates cooling demand, many builders are sitting on inventory and hungry to sell. That means huge incentives for buyers: we're talking rate buy-downs, closing-cost credits, free upgrades, and more.

In this guide I'll break down why now is the time to shop new homes in San Antonio, what builders are offering, and how military buyers can stack VA benefits on top of those deals. Plus, we'll crunch the latest market stats so you know how much leverage you have.

Ready to save? Schedule a free consultation with me to map out the best strategy. I'll show you exactly which builder specials you qualify for and negotiate on your behalf.

Quick Takeaway: New home inventory is up and builders are eager. Smart buyers (especially veterans!) can combine San Antonio new construction incentives with VA financing for maximum savings. Read on for market data, builder deals, and negotiation tips.

Market Conditions: Why Builders Are Offering Incentives

San Antonio's housing market has swung back in buyers' favor – especially for new construction. In 2024 we saw an 18% surge in new home listings and builders are pricing competitively to move inventory.

Active listings jumped 13% year-over-year to 16,579 in September 2025, giving buyers more choices. Even better, months of supply climbed to 5.9 months, up from a tighter market last year.

In practical terms, many spec homes are lingering on the market longer than before, or being offered as quick-move-in inventory with discounts. This shift is driven by a few factors.

Mortgage rates have hovered around 6–7%, pricing some buyers out. High existing-home prices also pushed many would-be sellers to stay put.

But San Antonio's strong job growth and population influx (especially from military relocations) kept demand growing. Builders responded by ramping up construction – ultimately creating a buyer's market in new construction.

The bottom line? You have more bargaining power than you think. More inventory and longer market times mean you can negotiate harder on price and perks.

Local Market Insight: In September 2025, San Antonio saw 2,823 homes sold (up 5% YoY), with average prices holding steady around $370K. Builders in South Texas are selling at consistent pace, but many are now offering incentives to stand out. For buyers, that means less competition and better deals.

Builder Incentives Right Now

Almost every major builder in San Antonio is sweetening the pot to lure buyers. Here are the main types of new construction incentives you'll see:

Rate Buy-Downs: Many builders will pay to temporarily lower your mortgage rate. For example, M/I Homes is offering 3/2/1 buydowns that reduce your rate on a 30-year FHA loan to about 1.875% in Year 1 and gradually step up in Years 2–3.

This can save hundreds on your monthly payment right away. These programs often require using the builder's lender, but the savings are hard to beat.

Closing Cost Credits: Builders frequently offer cash toward your closing costs. MI Homes is putting up to $6,000 toward closing or pre-paids on many homes.

Perry Homes advertises up to $15,000 in "flex dollars," which you can apply to closing costs, interest rate buydowns, or even upgrades. Think of this as free money to reduce your out-of-pocket at closing.

Free Upgrades & Design Options: With profit margins higher on options, builders can throw in upgrades at no extra charge. Lennar Homes is known to include stainless steel appliances or smart-home features at no cost on certain models.

M/I Homes often gives free granite countertops, smart thermostats or appliance packages on quick-move-in homes. These add real value without increasing your loan amount.

Community Specials: Look for grand-opening deals and end-of-phase discounts. The best incentives often come when a neighborhood first launches or when it's winding down.

At grand openings, you might see extra upgrades or price breaks to build sales momentum. Similarly, late in a development they may cut prices or offer big credits to clear the last inventory. Always ask where a community is in its development schedule.

Timing Is Everything – End-of-Quarter & Seasonality

Builders are not always equally motivated. Season and timing matter.

I often remind clients that quarter-end urgency is real in homebuilding. If a project's deadline looms or the calendar quarter is ending, sales teams get aggressive.

They have stretch goals and costs to cover, so you'll see the deepest discounts as the month or quarter closes. Likewise, if a neighborhood is finishing up its lot inventory, builders may slash prices or pull out all the stops.

Spring/Fall Advantage: In San Antonio, peak homebuying tends to be spring, so builders can be more promotional in slower seasons (late summer and fall). Holiday-themed sales events are also common: MI Homes' "Holiday of Homes" sale offered substantial closing-cost help and design credits last fall.

Negotiation Tip: Never accept the sticker price or posted incentives at face value. Use market data (like inventory levels and recent sale prices) to negotiate.

If comparable new builds are taking longer to sell, ask the builder to sweeten the deal. I always advise buyers to request free upgrades (lighting packages, fencing, garage door openers) or ask for a lot premium reduction.

How VA and Military Buyers Gain an Edge

As a fellow veteran, I make it a mission to translate VA benefits into builder savings. Remember, a VA loan itself gives you 0% down financing with no PMI, which already lowers your costs.

But can you layer builder incentives on top? Absolutely – in most cases, yes.

Most builder incentives do not exclude VA buyers. In fact, many are proud to market special programs for vets. For example, MI Homes' "Hometown Heroes" deal is a $1,000 closing-cost credit for military, emergency responders, and teachers.

Here's how to maximize it:

Combine Builder Credits with VA Financing: Builders can still pay your closing costs, buy down your rate, or pay for upgrades even if you use a VA loan. The key is not to exceed fair market value, so always verify comps.

I work closely with VA-savvy lenders to ensure that the builder's credits don't push the contract price above appraised value. Often you can get both the VA benefit and the builder credit.

Preferred Lender Trade-Off: Some incentives (especially rate buydowns) require using the builder's preferred lender. This isn't always a bad deal, but you should compare.

Sometimes you might get a slightly higher rate in exchange for a hefty builder credit. I'll crunch the numbers for you.

Stack State Programs: Beyond builder deals, Texas offers programs that complement VA loans. The Texas Veterans Land Board (VLB) offers low-rate home loans up to $806,500 for vets, often with rate reductions for disabled vets.

The Texas State Affordable Housing Corp (TSAHC) provides down-payment grants for veterans. These aren't builder incentives, but they're free money that vets can combine with new-home perks.

Key VA Fact: VA buyers can finance 100% of the home price. That means if a builder covers your closing costs (or even pays you a bit), you can roll it into the loan as long as it doesn't exceed the appraised value.

And if you take advantage of rate buydowns (like a 3/2/1 program), you can always refinance later if rates fall. In San Antonio's current market, locking in a home now while getting builder help, then refinancing when rates drop, is often a winning plan.

Negotiating Like a Pro

Let's talk tactics. If a builder offers a deal, that's your starting point – but almost everything is negotiable.

Compare comps: Bring recent sales data to the table. If nearby homes sold lower, you have leverage to ask for a better price or extra freebies.

Ask for seller concessions: Don't be shy about requesting closing-cost contributions or even seller-paid points. Common asks: a percentage off base price, a bunch of upgrades (cabinets, flooring, appliances), or paying your title fees.

Be flexible with timing: If your timeline allows, make an offer that matches the builder's needs. Offering a faster closing or being willing to accept the home "as-is" can make you more attractive.

Watch for hidden costs: If a builder gives a big incentive, make sure they haven't inflated the base price first. A good agent (like me) will parse the contract line-by-line.

With these strategies, you're not just a buyer – you become a problem-solver partner for the builder. And as a veteran I know how to negotiate firmly but fairly, drawing on my experience navigating contracts and timelines.

FAQ: San Antonio New Construction Incentives

What incentives are available on new homes in San Antonio?

Most major builders are offering rate buydowns, closing-cost credits, and free upgrades. For example, you might see 3-2-1 interest-rate buydowns (to roughly 2% first year) and thousands toward closing costs.

Upgrades like granite counters, appliances, or landscaping packages are also common freebies on move-in-ready homes. Incentives vary by community and builder, so it pays to ask for the latest promotion.

Should I use the builder's preferred lender to get the incentives?

Builders often require that for rate buydowns or FHA specials, but it's a trade-off. Their lenders might charge higher fees or interest.

You should crunch the numbers: sometimes taking the incentive (like $10,000 credit) and using the builder's lender is still better, but other times using your own lender and negotiating cash back is more profitable. I can run side-by-side comparisons for you.

Can I use my VA loan on a new construction home and still get the builder incentives?

Absolutely. Your VA loan gives you zero-down power, and most builder perks still apply.

If the builder pays your closing costs or provides upgrades, those can be rolled into the VA transaction (as long as the appraised value is not exceeded). The incentives essentially reduce the effective price or your cash needed at closing.

Many builders have specific incentives for veterans (like bonus credits) too. The key is making sure the builder is VA-approved (most are) and the contract reflects any credits properly.

How do I know if a builder incentive is worth it?

Always evaluate the net benefit. A $6,000 closing credit might sound great, but if it requires a rate that's 0.5% higher than average, calculate the long-term cost of that higher rate.

My job is to do this math for you. In general, cash-out incentives (credits, upgrades) are pure wins, while rate incentives depend on your loan and how long you'll own the home.

When should I pull the trigger on a new construction offer?

Timing is a strategy. I often wait until end-of-quarter pushes or when a neighborhood is nearing completion.

If you have a flexible move-in timeline, making an offer at the right moment can unlock extra concessions. We'll monitor community phases and MLS data to advise you on the best timing.

Ready to Move Fast on a Great Deal?

San Antonio's builders are ramping up incentives you won't want to miss. As an ex-Air Force officer and local market expert, I make it my mission to guide military families through these deals.

Let me arm you with the latest market data, negotiate every perk, and combine your hard-earned VA benefit for the best outcome. Contact me today to see what incentives are available for your move.

Whether you're PCSing to JBSA or just relocating in the area, I've helped dozens of service members secure brand-new homes with thousands in savings. Get in touch now – we'll put together a tailored strategy so you can tour confidently and lock in the deal of a lifetime.

Your new home (and its incentives) are waiting. Let's make it happen.