Why Buy New

A $400,000 home can look very different with builder incentives.

Use this page to show buyers the simple math: market-rate payment vs 3.99% FHA vs 4.75% Conventional, plus what that can mean for monthly savings and buying power.

See $400,000 comparison Compare Your Price Text Tim

$400,000 example6.37%

Current market-rate comparison source

Freddie Mac PMMS 30-year fixed · As of 5/7/2026. Examples are informational only.

Payment power

Builder promo rates can change the monthly math.

Compare the same example price against a market-rate scenario, 3.99% FHA promo example, and 4.75% conventional promo example. Then ask Tim to verify what applies today.

Current market-rate example6.37%

$3,079/mo estimated

Same example home price, before any builder promo-rate opportunity.

Potential savings callout$566/mo

That is approximately $6,792 per year, $33,960 in five years, and $203,760 across a 30-year loan in this illustrative example.

Examples are illustrative only. Rates, incentives, taxes, insurance, HOA, mortgage insurance, and qualification vary. Verify current terms with Tim and the lender.

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Buying power

If a market-rate payment buys around $400,000, promo rates may change the conversation.

This is the Realtor-friendly moment: “Let’s compare the payment before you rule out new construction.” Same rough payment, different rate assumptions, different possible purchase power.

Market-rate baseline$400,000

Approx. $3,079/mo at 6.37% with a 3.5% down FHA-style assumption.

3.99% FHA buying power$510,000

Approx. $110,000 additional purchase power for a similar payment.

4.75% Conventional buying power$596,000

Approx. $196,000 additional purchase power for a similar payment.

Buying power examples are illustrative only and depend on borrower qualification, taxes, insurance, HOA, mortgage insurance, rate, incentives, and lender approval.

Compare Your Price

Enter any price and see the payment conversation instantly.

Use this with buyers at the kitchen table, in the model, or on your phone. It compares a market-rate payment against 3.99% FHA and 4.75% Conventional promo examples.

Home price$400,000

Market rate payment$3,079/mo6.37% example · same FHA down-payment assumption for apples-to-apples savings.

3.99% FHA$2,513/mo

Monthly savings: $566

$6,792/year · $33,960 in 5 years

4.75% Conventional$2,156/mo

Monthly savings: $326

$3,912/year · $19,560 in 5 years

Buying power$110,000 more

Approximate additional purchase power at 3.99% FHA for a similar payment.

Conventional buying power$196,000 more

Approximate additional purchase power at 4.75% Conventional for a similar payment.

Estimates are informational only. Taxes, insurance, HOA, mortgage insurance, rates, incentives, and qualification vary. Ask Tim to verify current details.

Buyer psychology

A new home helps buyers avoid the “what breaks next?” feeling.

The emotional win is confidence: new roof, new HVAC, new appliances, modern layouts, cleaner warranties, and less immediate renovation pressure.

Brand-new systems

New roof, HVAC, plumbing, electrical, and windows reduce early surprise-repair anxiety.

Modern layouts

Open kitchens, better storage, flex spaces, smart-home tech, and layouts built for how people live now.

Energy efficiency

Newer insulation, windows, appliances, and building standards may support lower utility usage.

Builder warranties

Warranty coverage can give buyers more confidence than inheriting an older home’s unknowns.

Less renovation drag

Skip the first-year remodel list and focus on moving in, furnishing, and enjoying the home.

Incentive leverage

Promotional rates and closing-cost opportunities may help monthly affordability when available.

New vs resale

A lower payment is only part of the story.

Older homes can come with surprise repairs. New construction gives buyers a cleaner runway: new systems, modern efficiency, and builder warranties.

Older resale home$6,800/yr

Estimated maintenance/repair exposure

New construction$2,200/yr

Estimated early-years maintenance/repair exposure

Potential annual difference$4,600

Illustrative ownership-cost gap

Roof

Resale: Aging roof can become a major capital expense

New: Brand-new roof with builder warranty framework

HVAC

Resale: Older systems may be near replacement age

New: New HVAC equipment and modern efficiency

Plumbing

Resale: Age and prior repairs can vary by home

New: New plumbing systems and less immediate uncertainty

Windows / insulation

Resale: Older efficiency can increase comfort and utility concerns

New: Modern windows, insulation, and building standards

Appliances

Resale: May need repair or replacement

New: Brand-new appliance package

Renovation costs

Resale: More likely to need flooring, paint, counters, fixtures, or layout updates

New: Move-in-ready finishes and newer layouts

Smart home / technology

Resale: Often added later and inconsistently

New: Modern smart-home features and newer wiring/layout support

Maintenance surprises

Resale: More unknowns from prior ownership

New: Lower early-years upkeep and clearer warranty path

Maintenance and repair figures are generalized estimates only; actual costs vary by property, age, usage, warranty terms, and market conditions.

Text Tim about new vs resale

Make the math real

Want to compare new construction vs resale for your actual budget?

Send Tim your target payment, preferred city, and whether you are comparing FHA, conventional, or cash. He can help verify current D.R. Horton West Valley options and lender terms.

Important disclaimers

Rates, incentives, pricing, homes, taxes, insurance, HOA, mortgage insurance, and qualification are subject to change. Payment, savings, and buying-power examples are illustrative only and are not offers to lend. Financing is subject to borrower qualification and lender approval. Maintenance and utility savings vary by property, age, usage, warranty terms, and market conditions. Verify all details with Tim Coleman and the appropriate lender/builder sources before relying on them.