New Construction is the Perfect Answer to Higher Interest and Insurance Rates!
Whether you are a first-time home buyer or simply looking to cut costs on rising insurance costs, purchasing a new construction home can help save you thousands! It’s no secret that the cost of virtually EVERYTHING is on the rise. While home ownership is no different with higher rates, higher home sales prices, and higher insurance rates- buying new can help give the buyer a leg up on keeping costs down.
The requirement in most Baldwin County areas, for newly constructed homes, is the Gold Fortification certificate. Having this certificate ensures that the home was built to withstand the excess winds and storms that come with living close to the coastline. When a home is Gold Fortified here in Baldwin County, the insurance rate is typically right at 50% lower than a home that was not built to the GF standards. That can become a tremendous savings, and sometimes is the difference between being able to afford a home or not.
Another potential savings that I would like to highlight here is the incentives that some of the new home builders are offering. These types of incentives can be lowered interest rates (when using the builder’s lender partner), in addition to incentives towards upgrades and/or closing costs!
Below are some of the volume home builder rates and incentives that are being offered (at time of this post):
- Almost all of the DR Horton homes are currently offering a 4.99% FHA and 5.5% Conventional interest rate, along with $5000 in buyer incentives. Also offering a LOW 3.99% FHA/VA/USDA on select Roberts Cove homes that close in April 2025!
- Maronda Homes is offering up to 20k in incentives to use however you would like (upgrades, closing costs, rate buy down etc!)
- Adams Homes is offering up to 20k OR 3.99% Financing on their Gulf Shores communities, 10k or 4.99% Financing on their Foley communities, and 5-10k incentives on their Daphne communities.
- DSLD Homes is currently offering 5.99% on FHA and 6.5% Conventional in addition to up to 10k in closing costs on “select” homes.
When calculating payment on a $300,000 home at 3.99% vs. the current average conventional rate of 6.7%, there is a $500 per month savings!
It is not out of the question to buy a brand new home in Baldwin county with a payment under $2000. You can rarely find something to rent for that price, let alone a brand new house.
Example: Roberts Cove Home offer:
$360,900 with 3.99% rate
4 beds, 2 baths 1915 sq ft
Approx insurance: $1200/yr Approx Taxes: $1000/year
Payment: $1852.62 (with FHA min 3% down)
The following homes are currently listed as NEW CONSTRUCTION for sale in Baldwin County in the MLS.
However, many of the volume home builders that are offering incentives do not always have all availability updated online, so if there is a specific area you are looking for, please reach out and I will send you all of the up to date specials and incentives as they do change day to day!
