San Antonio New Construction Incentives: What Military Families Need to Know in 2025

After helping dozens of families relocate to San Antonio, many of them military families heading to Joint Base San Antonio, I can tell you this: San Antonio new construction incentives are at an all-time high right now, and most buyers don't realize just how much negotiating power they have. I'm Anthony Sharp, a US Air Force veteran and San Antonio Realtor specializing in military relocations, and I've watched builders get more aggressive with their incentives than I've ever seen in my career.

With mortgage rates hovering around 6-7% and inventory climbing, builders are offering everything from massive rate buydowns to five-figure closing cost credits just to move their inventory. If you're shopping for a new construction home in San Antonio right now, you're sitting in the driver's seat.

But here's the catch: you need to know what incentives exist, how to stack them (especially if you're using a VA loan), and which builder tactics to watch out for. In this guide, I'll break down exactly what San Antonio builders are offering in late 2025, how military buyers can maximize VA benefits on top of builder deals, and the common mistakes that cost buyers thousands of dollars every year.

Ready to unlock thousands in savings on your new construction home? Contact me at Sharp Realty Group for a free consultation where I'll show you the exact builder incentives you qualify for and negotiate on your behalf.

Why San Antonio Builders Are Offering Record Incentives Right Now

The San Antonio housing market has shifted dramatically in buyers' favor, especially for new construction. In September 2025, San Antonio saw 2,823 homes sold, which was actually up 5% year-over-year, but here's the key detail: active listings jumped to over 16,500 homes, and inventory climbed to 5.9 months of supply.

That's the highest we've seen in years and signals a balanced-to-buyer's market. What does this mean for you?

Builders are sitting on more inventory than they want, and they're willing to negotiate aggressively to move homes before the next construction phase begins. Median home prices in San Antonio are hovering around $310,000 to $324,000 depending on the area, with average prices in the $370K-$392K range.

But with higher interest rates keeping some buyers on the sidelines, builders can't rely on bidding wars anymore. I'm seeing spec homes and quick-move-in inventory that would have sold in days two years ago now sitting for 78 days on average.

Builders have carrying costs, construction loans to pay off, and quarterly sales targets to hit. That's why they're rolling out incentive packages worth $10,000 to $30,000 or more to qualified buyers.

The bottom line? You have more bargaining power than you think, and builders know it.

Watch: The Costly Mistakes San Antonio Home Buyers Make

Before we dive into the incentives, I want you to watch my latest video where I break down the five biggest mistakes I see buyers make when moving to San Antonio. These mistakes cost families thousands of dollars every single year.

From underestimating property taxes (Texas has no state income tax but makes up for it with a 1.8% property tax rate in Bexar County) to ignoring our unique foundation challenges with expansive clay soil, these are the oversights that can turn your dream home into a financial headache. I also cover why skipping a quality home inspection, even on brand-new construction, is one of the worst decisions you can make.

Watch my full video below to arm yourself with the knowledge you need before touring a single model home. These insights will help you negotiate better deals and avoid the pitfalls that catch first-time San Antonio buyers off-guard.

The Top San Antonio New Construction Incentives Available in Late 2025

Rate Buydowns: Lower Your Monthly Payment Immediately

This is the most popular incentive I'm seeing right now. Builders will pay thousands of dollars upfront to temporarily reduce your mortgage interest rate, which can save you hundreds per month in the first few years.

For example, M/I Homes is offering 3-2-1 buydowns on select homes, which means your rate could drop to around 1.875% in Year 1, then step up to roughly 2.875% in Year 2, and 3.875% in Year 3 before returning to your permanent rate in Year 4. Taylor Morrison is offering 2-1 buydowns that lower your rate for the first two years, with some communities offering up to $12,000 toward closing costs OR the buydown.

Here's the trade-off: most rate buydowns require you to use the builder's preferred lender. Sometimes that's a great deal, sometimes it's not.

Closing Cost Credits: Free Money at the Closing Table

Closing costs in Texas can run 2-5% of your purchase price, which means $6,000 to $15,000 or more on a $300,000 home. Many builders are covering these costs outright or offering massive credits.

Perry Homes is advertising up to $15,000 in "flex dollars" that you can apply toward closing costs, rate buydowns, or upgrades. Empire Communities offers a $1,000 credit toward closing costs specifically for veterans, active-duty service members, teachers, and first responders through their Heroes program.

For VA buyers, this is huge. Your VA loan already covers 100% financing with zero down payment and no PMI, so when a builder pays your closing costs, you could literally walk into a brand-new home with almost nothing out of pocket.

Free Upgrades and Design Center Allowances

Builders make their biggest profit margins on upgrades like granite countertops, stainless appliances, upgraded flooring, smart home packages, and landscaping. But when they need to move inventory fast, they'll throw these in for free.

M/I Homes frequently offers free granite countertops, smart thermostats, or full appliance packages on quick-move-in homes. Lennar's Everything's Included program bundles smart home features, upgraded appliances, and energy-efficient systems at no extra cost.

I always tell my clients: don't be shy about asking for more. If a builder is offering $5,000 in design credits, ask for upgraded cabinets, a covered patio, or a full sod and sprinkler system.

Community-Specific and Seasonal Incentives

Timing matters. Builders ramp up incentives at grand openings to build momentum, at the end of development phases to clear final inventory, and during slower seasons like late summer and fall.

I'm also seeing end-of-quarter and end-of-year pushes where sales teams get aggressive to hit their targets. If you're flexible with your timeline, making an offer in late November, late March, or late June can unlock extra concessions that weren't on the table a week earlier.

How Military Families and VA Buyers Can Stack Incentives for Maximum Savings

As a fellow veteran, this is my favorite part: showing military families how to layer their hard-earned VA benefits on top of builder incentives. Here's how it works.

Your VA Loan Advantage

The VA loan is already one of the most powerful financing tools available. You get 100% financing (zero down payment), competitive interest rates, no private mortgage insurance (PMI), and flexible credit requirements.

On a $350,000 home, eliminating PMI alone saves you roughly $200-$300 per month compared to a conventional loan. The good news? You can absolutely combine builder incentives with your VA loan.

Stacking Builder Credits with VA Financing

Let's say a builder is offering $10,000 toward closing costs and a 2-1 rate buydown. As a VA buyer, you can still take advantage of both, as long as the final purchase price doesn't exceed the home's appraised value.

Here's a real example from a client I helped last quarter: They bought a $380,000 new construction home in Fronterra at Westpointe using their VA loan. M/I Homes gave them $10,000 in closing cost assistance and threw in free granite countertops and a smart home package.

Because they used their VA entitlement with zero down and the builder covered closing costs, they moved in for less than $2,000 out of pocket, and that was mostly prepaid property taxes and homeowners insurance.

Texas Programs for Veterans

Beyond builder incentives, Texas offers state-level programs that veterans can stack on top. Texas Veterans Land Board (VLB) offers low-rate home loans up to $806,500 with competitive rates and sometimes additional rate reductions for disabled veterans.

Texas State Affordable Housing Corporation (TSAHC) provides down payment assistance grants for first-time homebuyers, including veterans. City of San Antonio Homeownership Incentive Program (HIP 80) offers $1,000 to $30,000 in down payment assistance for first-time buyers, with loans under $15,000 forgiven after five years.

Combining these programs with builder incentives and your VA loan can result in massive savings. I've had military clients walk away with over $40,000 in total benefits when we stack everything correctly.

Negotiation Strategies: How to Get Even More from Builders

Here's the truth: the posted incentives are just the starting point. Almost everything is negotiable when you know how to play the game.

Bring comparable sales data. If nearby homes sold for less or similar homes are sitting on the market longer, you have leverage to ask for a price reduction or extra perks.

Ask for seller concessions. Don't be afraid to request that the builder pay your title fees, homeowners association transfer fees, or even your first year of HOA dues.

Time your offer strategically. If a builder has a model home they're about to release or a spec home that's been sitting for 60+ days, they're motivated.

Request free add-ons. Even if a builder says their incentive package is firm, ask for extras like upgraded lighting, garage door openers, extended patios, or full landscaping packages.

Common Pitfalls: What to Watch Out For with Builder Incentives

Not all incentives are created equal, and some come with strings attached. Here are the red flags I watch for.

Inflated Base Prices

Some builders jack up the list price, then offer a "huge" incentive to make it look like a deal.

Preferred Lender Requirements

Rate buydowns and some closing cost credits often require using the builder's mortgage company.

Expiration Dates and Fine Print

Many incentives expire at month-end or quarter-end, and some are tied to specific lot selections or floor plans.

Appraisal Gaps

If the builder's incentives push your contract price above fair market value, the home won't appraise, and you could lose your financing (especially with a VA loan).

I review every contract line-by-line with my clients to make sure there are no surprises at closing.

Frequently Asked Questions: San Antonio New Construction Incentives

What are the most common new construction incentives in San Antonio right now?

The most common incentives in late 2025 are rate buydowns (like 3-2-1 or 2-1 programs), closing cost credits ranging from $5,000 to $15,000, and free upgrades such as granite countertops, stainless appliances, smart home systems, and landscaping packages. Some builders are also waiving lot premium fees on select homes.

Can I use my VA loan and still get builder incentives?

Absolutely. Most builder incentives are available to VA buyers, and you can stack them with your VA loan's zero-down, no-PMI benefits. The key is ensuring the final contract price doesn't exceed the appraised value.

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

It depends. Some incentives, especially rate buydowns, require the builder's lender, but their rates and fees might be higher. I always run a side-by-side comparison for my clients to see which option saves more money.

Which San Antonio builders are offering the best incentives for military families?

M/I Homes, Perry Homes, Taylor Morrison, Empire Communities, and Lennar are all offering strong military incentives right now. Empire's Heroes program gives veterans an extra $1,000 credit, Perry Homes offers up to $15,000 in flex dollars, and Taylor Morrison provides up to $12,000 toward closing or rate buydowns.

When is the best time to buy new construction in San Antonio to get the biggest incentives?

End of quarter (March, June, September, December) and end of year are prime times because sales teams have targets to hit. Also watch for grand opening events and end-of-phase closeouts when builders are motivated to clear inventory.

Your Next Move: Let's Secure the Best New Construction Deal in San Antonio

San Antonio new construction incentives are at historic highs right now, and if you're a military family or veteran, you have even more advantages to leverage. From rate buydowns and massive closing cost credits to free upgrades and stackable VA benefits, the opportunities to save thousands of dollars are everywhere, but only if you know how to find them and negotiate effectively.

As a US Air Force veteran and top Military Relocation Expert, I've helped dozens of service members and their families navigate San Antonio's new construction market and secure deals that saved them tens of thousands of dollars. I know which builders are motivated, which communities are offering the best incentives, and how to structure contracts so you get maximum value without compromising on the home you want.

Don't leave money on the table. Contact me today at Sharp Realty Group for a free consultation where I'll show you exactly which builder incentives you qualify for, run the numbers on VA loan stacking strategies, and negotiate on your behalf to get you the best deal possible.

Whether you're PCSing to Joint Base San Antonio, relocating for a civilian job, or simply ready to upgrade to a brand-new home, I'll make your San Antonio move a sharp one. Let's get started.