This Is NOT a Program Page — This Is About Leverage
Down payment assistance programs give you money. That is great. But in a buyer's market, you have something even more powerful: negotiation leverage. Sellers are competing for YOU. And most first-time buyers — especially those relying only on program money — never learn to use that leverage.
Barrett Henry, REALTOR® teaches every buyer the three pillars of buyer's market negotiation: seller concessions, rate buydowns, and builder incentives. Used together with assistance programs, these strategies stack to create deals that would have been impossible 2-3 years ago.
Pillar 1: Seller Concessions — Free Money from the Seller
A seller concession is money the seller credits toward your costs at closing. In 2021, asking for concessions got your offer laughed at. In 2026, sellers expect it. Here is what is happening right now in Tampa Bay:
- 30-40% of active listings already offer concessions in the listing remarks
- Sellers who do not advertise concessions often agree when asked — they want to close
- Average days on market: 45-60+ (versus 5-7 days in 2021)
- Price reductions on one-third of listings — sellers are motivated
Concession Limits by Loan Type
| Loan Type | Max Seller Concession | On $350K Home |
|---|---|---|
| FHA | 6% | $21,000 |
| VA | 4% | $14,000 |
| Conventional (3% down) | 3% | $10,500 |
| Conventional (10-25% down) | 6% | $21,000 |
| USDA | 6% | $21,000 |
That seller concession money goes toward closing costs, prepaid taxes and insurance, and — critically — rate buydowns. Which brings us to Pillar 2.
Pillar 2: Rate Buydowns — Lower Your Payment Starting Day One
A rate buydown uses upfront cash (from the seller, builder, or you) to reduce your interest rate temporarily or permanently. In a buyer's market where sellers are contributing concessions anyway, this is the smartest use of that money.
The 2-1 Buydown
The most popular structure right now. Here is how it works on a $350,000 home at 6.75%:
The seller pays ~$8,400 at closing to fund the buydown escrow account. You get $469/month savings in year one. And here is the kicker: if rates drop and you refinance in year 2 or 3, you never pay the full rate at all. The buydown bought you time to refinance at a lower permanent rate.
Permanent Rate Buydown (Points)
Alternatively, seller concession money can buy permanent discount points. Each point (1% of the loan amount) typically reduces your rate by 0.25%. On a $350,000 loan:
- 1 point ($3,500) → rate drops from 6.75% to 6.50% → saves $81/month permanently
- 2 points ($7,000) → rate drops to 6.25% → saves $164/month permanently
- 3 points ($10,500) → rate drops to 6.00% → saves $249/month permanently
If you plan to stay 7+ years, permanent points often beat a 2-1 buydown. Barrett's lenders run both scenarios so you pick the better deal.
Pillar 3: Builder Incentives — The Hidden Gold Mine
New construction builders in Tampa Bay are sitting on completed inventory they need to move. Their incentives in 2026 are the most aggressive in over a decade:
- Rate buydowns to 4.99-5.49% through their preferred lender (permanent, not temporary)
- $10,000-$30,000 in closing cost credits on move-in ready homes
- Free upgrades: appliance packages, upgraded flooring, quartz countertops, covered lanais
- Lot premium waivers: $5,000-$15,000 savings on premium lots (corner, water view, cul-de-sac)
- HOA fee coverage: Some builders pay the first 1-2 years of HOA dues
The catch:Builder incentives almost always require using their preferred lender and title company. Barrett ensures the builder's lender is competitive and the overall deal still makes sense. Sometimes the builder's rate buydown saves you more than any DPA program would.