In Buckeye, the Builder Down the Street Is Selling a Cheaper Mortgage
October 22, 2026
October 22, 2026
How much would a Buckeye homeowner have to pay to give a buyer the same mortgage rate the new-home community down the road is advertising? For a buyer putting 5% down on a conventional loan, the answer runs into a rule before it runs into a budget. Fannie Mae caps what an interested party, including the seller, can put toward that buyer's financing at 3% of the price when the loan-to-value ratio is above 90% on a principal residence or second home. Any seller-paid rate buydown counts toward that cap.
A builder that funds its rate through a bulk forward commitment can work under a different provision in the same guide. That means a resale seller and a builder across the road can be financing their sales under different rules, even when the price per square foot looks similar.
The two sides of the comparison are far apart. ABC15 reported that the average 30-year fixed rate jumped to 7.3% the week of October 2, 2026. The station called it the biggest one-week increase in about four years and the highest level since November 2023. By October 15, Freddie Mac's weekly survey had the 30-year fixed at 7.40%.
Here's what Buckeye builders were advertising when we checked their sites on October 19, 2026:
This isn't just a Buckeye pattern. ABC15's October report on northwest Surprise said builders there are also marketing rate buydowns and closing-cost help to bring in buyers.
A builder-affiliated mortgage company can pay points up front for a block of below-market-rate money and then write individual buyers' loans out of that pool. John Burns Research and Consulting described these commitments in October 2023 as typically lasting 60 to 90 days. HousingWire reported in November 2025 that big builders' access to capital lets them buy these forward commitments in a way smaller builders and individual homeowners can't.
The rulebook treats the two sellers differently. Fannie Mae's Selling Guide says a buydown funded by an interested party, or by a lender affiliated with one, counts toward the concession limit. It then adds a note. Standby, or forward, commitments between a builder and a lender for blanket rate coverage, signed before the buyer's sales contract, are "not subject to Fannie Mae's maximum financing concessions because they are not attributable to the specific loan transaction."
The order of events decides it. A blanket commitment signed before the buyer shows up isn't tied to that buyer's loan. A buydown a resale seller agrees to as part of a specific sale is tied to that loan, and so it counts toward the cap.
The builder pages listed above advertise their rates but don't say how each offer is funded. Whether a given promotion runs through a forward commitment is a question for the builder's lender.
The same HousingWire article cited the American Enterprise Institute's estimate of how much this matters. If these bulk buydown costs were counted, about 25% of GSE loans and 66% of FHA loans on new homes sold by major builders would go over the 6% concession cap. Lenders are leaning into it, too. A June 2026 Scotsman Guide report described forward commitments as common and quoted a lender executive who said FHA execution through a forward commitment came out cheaper "by a large margin" than its conventional counterpart.
| Loan type | What an interested party can contribute | Source |
|---|---|---|
| Fannie Mae, principal residence or second home, LTV above 90% | 3% | Fannie Mae Selling Guide |
| Fannie Mae, principal residence or second home, LTV 75.01% to 90% | 6% | Fannie Mae Selling Guide |
| Fannie Mae, principal residence or second home, LTV 75% or less | 9% | Fannie Mae Selling Guide |
| Fannie Mae, investment property, any LTV | 2% | Fannie Mae Selling Guide |
| FHA | 6% of sale price, buydowns and discount points included | HUD FHA FAQ |
| VA | Concessions limited to 4% of reasonable value; closing-cost credits not capped | VA Home Loans |
Fannie Mae figures its percentages from the lower of the sale price or the appraised value.
Take a resale home at $400,000 and a buyer putting 5% down on a conventional loan:
John Burns' October 2023 estimates show how wide the spread runs. A buydown for the full loan term could cost up to 6% of the sale price, a 3-2-1 buydown about 4%, and a 2-1 buydown about 2%. Those numbers are nearly three years old. The firm also reported that some builders were spending 6.5% to 12% or more of the sale price on forward commitments combined with other incentives.
AEI's estimate explains the builder's choice. Cutting a buyer's rate by 100 basis points costs about 3.2% of the price, while getting the same monthly payment through a price cut would take about 10%. For a builder, the rate is the cheaper thing to move, and it keeps the sale price higher on the record.
That changes what a Buckeye buyer is really comparing. A new home and a resale home at the same sticker price can come with very different monthly payments. And the resale owner can't close that gap with a matching rate offer once a contract is signed, because the cap applies to that buyer's loan.
The headline rates aren't all the same kind of loan, so comparing payments means reading the terms.
Beazer's 2.99% is an FHA 5/1 adjustable-rate mortgage. The rate is set for the first five years and can adjust after that. Comparing it with a 7.40% 30-year fixed puts two different products side by side. DRB's 3.99% promotion at Apache Farms doesn't list eligibility rules or an expiration date on its page. Deadlines matter as well. D.R. Horton's Copper Falls pricing says the savings end November 1, and William Ryan's fall promotion runs through October 31. Both dates are just days after this post publishes.
Forward commitments are pooled money with a limited life, so when a builder's rate comes from one, the offer lasts only as long as that pool does. Any of these offers should be confirmed directly with the builder and its lender before anyone treats them as available terms.
The regional numbers show resale sellers already giving ground on asking prices. The ARMLS September 2026 STAT report says the median list price across its market fell from $480,000 six months earlier to $462,740 in August 2026. The median sale price held at $445,000 for August, 1.14% above a year earlier. Median days on market reached 64 in August, and median price per square foot was $258.38, down 1.12% year over year. ARMLS summed it up this way: "asking prices are adjusting, but the median price buyers are actually paying has not fallen below last year's level."
The October 2026 STAT report, covering September 2026 data, put the Arizona median sale price at $450,000 and months of supply at 4.45. These are metro and statewide figures, not Buckeye-only numbers. They do show the conditions a Buckeye resale listing is entering. Sellers have been cutting list prices while closed prices held steady, and a few miles away builders are cutting the mortgage rate instead.
For a resale owner, that points to the levers the rules allow. Those are the list price, contributions up to the cap that fits the buyer's loan, and features a new build may not have in its first year, such as mature landscaping, finished yards and window coverings already in place. The decision a buyer actually faces is between a monthly payment and a long-term rate.
HUD's FHA FAQ says permanent and temporary buydowns and discount points from interested parties count toward the 6% limit. The forward-commitment exception described above appears in Fannie Mae's Selling Guide. Buyers using FHA financing should ask the lender how a specific builder offer is structured.
A temporary buydown funded by the seller is still an interested-party contribution under Fannie Mae's guide and counts toward the cap. John Burns' 2023 estimate put a 2-1 buydown at about 2% of the sale price, which fits under a 3% cap.
No. VA limits seller concessions to 4% of the home's reasonable value, but seller credits for loan closing costs aren't capped.
This post is general information, not legal or financial advice. Buyers and sellers should confirm how these limits apply to their own loan with a licensed lender.
If you're weighing a Buckeye resale against a builder's rate offer, or pricing a resale listing against one, Valley Leaders can lay the monthly payments side by side and show where your sale stands within the concession limits. Start with a Free Home Valuation, and our two-agent team will price your home against the new-build offers nearby.
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