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New Construction·July 1, 2026·5 min read

New Construction Builder Incentives — July 2026 Update

Builders in Colorado Springs are offering strong incentives right now — rate buydowns starting at 1.99%, up to $75,000 in flex funds, price cuts, and special bonuses for military and first responders. Here's what's on the table.

By Jeff & Lane Morrell·The Morrell Group | eXp Realty

Thinking about building new in Colorado Springs? Builders are currently offering some really strong deals to get buyers in the door this month. Here's what's out there right now, broken down in plain English so you know exactly what to ask about.

Big Rate Discounts (Lower Your Monthly Payment)

Several builders are "buying down" your interest rate — meaning they pay extra upfront so your rate (and monthly payment) is lower than the normal market rate. Some are doing this for your whole loan, others just for the first few years before it steps up to a higher (but still solid) rate.

One builder is offering a 4-year step-up rate: 1.99% in year one, rising to 2.99%, then 3.99%, then settling at 4.99% (5.804% APR) from year four on — tied to their in-house lender on select move-in-ready homes

Another is offering 3.875% on a special 5-year loan program

A few others are running "2-1 buydowns" — your rate is 2% lower the first year, 1% lower the second year, then settles into the normal rate

Why this matters: Even a rate that steps up over a few years can still land well below today's typical market rate once it settles — but always ask for the year-by-year payment breakdown, not just the headline number.

Cash Toward Closing Costs or Upgrades

This is money the builder gives you that you can put toward your closing costs (the fees you pay to finalize your purchase) or toward home upgrades (like flooring, countertops, or appliances).

One builder is offering up to $75,000 in flexible funds toward closing costs, a rate buydown, or a straight-up price discount

Another has a 4th of July Sale: $50,000 off move-in-ready homes, OR $50,000 in free upgrades if you start building this month

A few builders are offering $5,000–$40,000 in design credits, depending on the home and community

Why this matters: This is basically free money toward things you'd be paying for anyway.

Special Programs for Everyday Heroes

If you (or someone in your family) is active military, a veteran, a teacher, a nurse or healthcare worker, a firefighter, or in law enforcement — several builders have extra bonus money just for you, on top of everything else.

Bonuses ranging from $2,000 to $4,000 in extra closing cost help or design credits

One builder is even covering a full year of neighborhood club membership (worth around $55,000) for the first few buyers in one community

Why this matters: If this applies to you, always tell your builder rep upfront — these don't get applied automatically.

Down Payment Help

One builder has a program offering up to $25,000 in down payment assistance, plus a below-market interest rate, with as little as $1,000 needed to get into the home.

Why this matters: This is a huge deal for first-time buyers who are short on upfront cash.

Straight-Up Price Cuts

Some builders are simply lowering the sticker price of the home — no strings attached. Individual home discounts ranging from around $6,500 up to $70,000+ depending on the floor plan and lot.

A Few Things to Know

These deals change fast — some reset every 2-3 weeks, so what's available today might look different in two weeks

Most of these offers require you to use the builder's preferred lender to get the full incentive — it's worth comparing that against outside lenders too

Incentives are usually tied to specific homes or communities, not the whole builder lineup

Rates that sound too good to be true (like a 1-2% starting rate) are often "step-up" programs that rise over a few years — ask for the full schedule before assuming it's your permanent rate

Want help figuring out which of these fits your situation best? Reach out and let's talk through it together — every family's numbers look different, and I'm happy to walk you through what actually makes sense for you.

Jeff & Lane Morrell | The Morrell Team | eXp Realty

Sources: Builder incentive data gathered from active new construction communities across El Paso County, July 2026. Incentives are subject to change and may require the use of builder-affiliated lenders.