Purchase · 5 min read
Do I have to use the builder’s lender to get the advertised rate?
August 2, 2026 · Written by Bill Egan, NMLS 7342
Short answer
Often, if you want that specific incentive. Production builders can buy the rate down because they control the concession. A regular seller usually cannot match it. Using the builder’s mortgage company is typically a condition of the advertised buydown — not a law that you must use them. You can still get an independent Loan Estimate before you give the incentive up.
01
Why this comes up
The billboard rate looks like 4 percent while the rest of the market is in the 6s, and you were told you cannot even write an offer unless you use the builder’s lender. You are afraid of leaving money on the table — or of a teaser that lasts 12 months.
02
Where this goes wrong
You use the billboard rate, then the incentive requires their lender and a price or option you did not price. Walking away late can cost the lot. Staying means a 2-1 buydown that steps up, and the fully indexed payment was never qualified. The problem hits when the teaser ends — or when the independent estimate would have been cheaper and the lot is already gone.
03
What we do about it
We read the builder’s Loan Estimate next to an independent one on the same price, lock, and buydown terms. Using their mortgage company is typically a condition of that incentive, not a law. If the incentive is worth more than the difference, we will say use it. We will not pretend a 12-month teaser is your loan.
04
How to get ready
Get both estimates before you give the incentive up. When a 2-1 buydown expires, the payment steps up — budget year three. The “discount” is paid from the price, the options, or the builder’s margin. It is not free. If you cannot make the fully indexed payment, walk.