Why new construction can cost less than you think
In 2026, Salt Lake Valley buyers can often stack two kinds of help on a new build: builder incentives and Utah's First-Time Homebuyer Assistance, which offers up to $20,000 on new, never-lived-in homes priced at $450,000 or less. Together they can lower both the cash you bring to closing and your monthly payment.
The incentives builders offer
- Rate buydowns through the builder's preferred lender. The builder pays to lower your interest rate. Ask whether it is permanent (for the life of the loan) or temporary (for example, lower for the first one or two years).
- Closing cost credits. The builder covers some or all of your closing costs.
- Upgrades and appliances. Free or discounted finishes, or appliances such as a washer, dryer and fridge.
- Price reductions on finished homes. Homes that are already built (often called spec or quick move-in homes) cost the builder money every month they sit, so there is often more room to negotiate.
Utah's $20,000 new construction program
First-time buyers can get up to $20,000 from Utah Housing Corporation for a down payment, closing costs or a permanent rate buydown. The home must be newly built, never lived in and priced at $450,000 or less, and you need a Utah Housing mortgage through a participating lender. Funds are first come, first served. See every program in our Utah first-time homebuyer guide.
How to tell a real deal from a sales pitch
- Compare the total, not the headline. A $15,000 incentive on an inflated price can be worth less than a lower price with no incentive. Compare price per square foot with nearby resale homes.
- Get a second loan quote. Incentives often require the builder's lender. Compare their rate and fees with an outside lender so you know what the incentive is really worth.
- Read the buydown terms. A temporary buydown means a higher payment later. Make sure you can afford the full payment.
- Check the HOA. Most new townhome and condo communities have HOA dues. Ask what they cover and how much they can rise.
- Inspect it anyway. New homes can have problems. Schedule a pre-drywall inspection if the home is still being built, and a final inspection before closing.
- Bring your own agent. The builder's sales team works for the builder. Your own agent negotiates for you, and builders often pay the buyer's agent. Ask us how it works on the home you like.
Where to look
New construction is spread across the valley, from townhome communities in Midvale to master-planned neighborhoods in South Jordan and Herriman. We post qualifying homes in our weekly Deal of the Week.
Builder questions checklist
- Is the rate buydown permanent or temporary, and what is the payment after it ends?
- Do I have to use your lender or title company to get the incentive?
- What is included in the base price, and what are the upgrade costs?
- What warranty comes with the home, and who handles claims?
- What are the HOA dues, and what do they cover?
- When will construction finish, and what happens if it runs late?
- Can my inspector do a pre-drywall and final inspection?
Your next step
Call or text (385) 318-3259 and we'll run your actual numbers with the incentives and assistance included, so you see the real monthly payment before you tour.
