New Construction in Central Florida: Builder Incentives, CDD Fees and Financing

Start with the full price, not the base price

A builder's advertised base price may not include every cost associated with the home you ultimately choose. Ask for a written breakdown that identifies all known charges. Common items to review include:

• Base home price
• Homesite or lot premium
• Structural options
• Design-center selections and upgrades
• Appliances or other included features
• Deposits and payment schedule
• HOA initiation or capital-contribution fees where applicable
• CDD assessments where applicable
• Closing costs and prepaid items
• Builder incentives and any conditions attached to them

How builder incentives work

Builders may offer incentives such as closing-cost credits, design allowances, appliance packages, temporary interest-rate buydowns, permanent rate buydowns, or other concessions. Some incentives may be available only when a buyer uses a preferred lender, title company, insurance provider, or specific loan product.

Do not evaluate an incentive in isolation. Compare the full offer: sales price, loan amount and down payment, interest rate and APR, monthly payment, lender fees and lender credits, cash to close, upgrade and lot-premium costs, HOA and CDD obligations, and contract requirements and timeline.

Rates, APRs, incentives, terms, and eligibility are subject to change and depend on borrower qualifications, property information, program requirements, and underwriting.

Temporary versus permanent rate buydowns

A rate buydown can reduce the interest rate for a defined period or for the life of the loan, depending on the structure. A temporary buydown may reduce the payment during the initial period, while a permanent buydown changes the note rate for the loan term.

The right choice depends on your objectives, cash to close, projected length of ownership, and the specific loan terms. Review the documents carefully and make sure you understand what the payment will be after any temporary buydown ends.

What is a CDD assessment?

A Community Development District, often called a CDD, is a local governmental entity that may finance infrastructure in certain planned communities. The assessment can affect a property's tax bill or be structured according to the community's arrangements. If a home has a CDD assessment, ask:

• What is the current annual amount?
• How is it billed?
• Is it included in the property-tax estimate?
• How long is the assessment expected to remain in place?
• Is there a payoff option, and what are the terms?
• How does it affect the projected monthly housing cost and loan qualification?

HOA costs and community documents

Many new-construction communities have an HOA. Before signing, review the current dues, payment schedule, services, rules, budget, insurance responsibilities, transfer or capital-contribution fees, rental restrictions, parking rules, and architectural-review process.

Association rules can affect how you use and maintain the property. The goal is not to assume a rule will fit every buyer's needs; it is to understand the documents before committing.

Financing timing for a new build

New construction timelines can change. A buyer may choose to obtain loan preapproval before selecting a home, then refresh documents or lock a rate closer to closing depending on the lender, builder, loan program, and construction schedule.

Your loan review may consider income, assets, debts, credit, employment, source of funds, occupancy, property type, and current housing obligations. If you are selling a South Florida home, the expected sale timeline and use of proceeds should be part of the planning from the beginning.

Inspections still matter

A newly built home can still benefit from independent inspections. Buyers may discuss inspection timing and access with the builder, including pre-drywall, final, and warranty-period inspections where allowed and appropriate. Review the contract for the builder's procedures and timelines.

New construction versus resale

A new home and a resale home have different advantages and due-diligence items. Compare the total payment, cash to close, location, condition, completion timeline, taxes, insurance, HOA/CDD obligations, and contract terms.

A resale property may have an established maintenance history and a faster closing timeline. A new home may offer different systems, warranties, and design selections but can involve a longer or less certain completion timeline. The right option depends on the specific property and your transaction plan.

Buyer checklist for Central Florida new construction

• Obtain a preapproval or mortgage scenario review before selecting a home
• Request a written price sheet and included-features list
• Confirm lot premium, options, upgrades, and deposits
• Compare builder incentive terms with the complete loan terms
• Review interest rate, APR, payment, lender fees, and cash to close
• Confirm HOA dues, CDD assessment, and other recurring charges
• Request an insurance estimate for the property
• Review the builder contract and completion timeline carefully
• Understand inspection access and warranty procedures
• If selling another property, coordinate sale proceeds and purchase timing early

Let's run the new-construction numbers

Before accepting a builder incentive or signing a contract, compare the base price, upgrades, lot premium, cash to close, rate, payment, taxes, insurance, HOA/CDD fees, and timeline as one plan.

About the author

Tanesha Tomlinson is a Florida Mortgage Loan Advisor with 24+ years of mortgage-industry experience and a Florida Realtor®. She helps buyers evaluate financing, payment structure, cash to close, builder incentives, sale proceeds, and purchase planning across South Florida and Central Florida.

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