November 4, 2026
New subdivisions are a big part of buying in Fernley and Dayton, and a new build comes with its own financing questions: whose lender to use, what the builder’s incentives are really worth, and how to lock a rate on a home that isn’t finished. US Financial, LLC is a mortgage broker, trusted since 1999, and we compare options from multiple wholesale lenders.
Here’s a plain-English guide to Fernley, NV new construction home loans, with notes that apply in Dayton and the rest of Lyon County.
Do you have to use the builder’s lender?
No. Builders often work with a particular lender, and the Consumer Financial Protection Bureau (CFPB) is clear that you don’t have to use it and have the right to shop around. If the builder owns part of the lender it refers you to, federal RESPA rules call for a written Affiliated Business Arrangement disclosure explaining the relationship, and the arrangement is allowed only if you aren’t required to use that lender.
Builders can still tie incentives, such as a closing cost credit or a rate buydown, to their preferred lender. That can be a good deal, or it can be offset by a higher rate or fees elsewhere. To know, compare a Loan Estimate from the builder’s lender with one from us for the same loan, down payment and lock period.
Questions to ask about any builder incentive
- Is it a price reduction, a closing cost credit, or a rate buydown?
- If it’s a buydown, is it temporary (a lower payment for the first year or two) or permanent (for the life of the loan)?
- Does the offer expire before the home is scheduled to be finished?
How much can a builder contribute?
Each loan program caps builder and seller credits. Anything over the cap generally comes off the price for the loan math.
| Loan type | Limit on builder or seller contributions |
|---|---|
| Conventional (Fannie Mae), primary residence or second home | 3% with less than 10% down; 6% with 10% to 24.99% down; 9% with 25% or more down (based on the lower of price or appraised value) |
| Conventional (Fannie Mae), investment property | 2% |
| FHA | Up to 6% of the sales price toward closing costs, prepaid items, discount points and buydowns |
| VA | Seller concessions limited to 4% of the home’s reasonable value; normal closing costs and market-rate discount points don’t count toward the 4% |
Builder money can’t cover your down payment on a Fannie Mae conventional loan or the 3.5% minimum investment on an FHA loan.
Rate locks on a home that isn’t finished
Matching the lock to the build
A home that’s months from completion may need a longer rate lock, and longer locks often cost more, so plan the lock around a realistic completion date. Some builders arrange financing with a lender in advance. Fannie Mae calls these standby or forward commitments, and when they’re set up before you sign a contract, they don’t count toward the limits above.
Temporary vs. permanent buydowns
A permanent buydown lowers the rate for the life of the loan. A temporary buydown lowers the payment for an initial period, then it rises to the full note-rate payment, so budget for the full payment. A buydown paid by the builder counts toward the contribution limit. See fixed vs. adjustable-rate mortgages.
Appraisal and completion on a new build
On a conventional loan, the appraisal for an unfinished home is based on the plans and specifications or a model home, and completion must be verified before the loan is sold to Fannie Mae, through the appraiser’s completion report (Form 1004D) or a letter signed by you and the builder with photos. If items like landscaping are delayed by weather, Fannie Mae allows them to be finished within 180 days of closing, with money held in a completion escrow.
FHA treats a home as new construction when it’s proposed, under construction, or finished less than a year ago and never occupied. The lender needs a builder’s certification (HUD-92541), a one-year builder warranty (HUD-92544), and the certificate of occupancy or required inspections.
Property taxes on a brand-new home
Nevada caps yearly property tax bill increases at 3% for a primary residence, but the cap doesn’t apply to new construction in its first fiscal year. Make sure the Lyon County Assessor shows the home as your primary residence, and ask that your escrow estimate be based on the finished home, since recent tax records may not reflect it.
2026 loan limits in Lyon County
| 2026, one-unit home | Lyon County (Fernley, Dayton) |
|---|---|
| Conforming limit (FHFA) | $832,750 |
| FHA limit (HUD), primary residence only | $638,250 |
| VA, full entitlement | No VA loan limit |
Lyon County is in HUD’s Reno metro area, so its FHA limit matches Washoe County’s and is higher than Carson City’s $575,000. For nearby counties, see 2026 loan limits for Northern Nevada and Lake Tahoe.
Which loan fits a new home in Fernley or Dayton?
- Conventional loans work for primary homes, second homes and investment property, up to $832,750 for a one-unit home.
- FHA loans are for a home you’ll live in, with at least 3.5% down and a Lyon County limit of $638,250. Compare the two in FHA vs. Conventional Loans in Nevada.
- VA loans let eligible veterans and service members buy with no down payment when the price doesn’t exceed the appraised value.
- Jumbo loans cover loan amounts above $832,750.
See also how much house you can afford, closing costs explained and our self-employed mortgage guide.
Before you sign a builder contract
- Get pre-approved so you know your price range before you pick a lot or floor plan.
- Ask under what conditions the builder deposit is refundable.
- Get every incentive in writing, with any lender requirement and expiration date.
- Compare Loan Estimates for the same loan, down payment and lock period.
- Ask how construction delays would affect your rate lock.
Why compare through a broker?
As a mortgage broker, we compare how several wholesale lenders price the same loan and set the numbers next to the builder’s offer. Mark personally handles every loan from start to finish. See Mortgage Broker vs. Bank in Reno.
Fernley, Dayton and nearby areas
See our Fernley and Dayton mortgage broker pages. We also help buyers in Sparks and Spanish Springs, Carson City and Fallon. Moving from California? See our relocation guide.
Frequently Asked Questions
Do you have to use the builder’s lender for a new home in Fernley?
No. The CFPB notes that you don’t have to use the builder’s lender and have the right to shop around. A builder may tie some incentives to its preferred lender, so compare the total cost of both offers.
How much can a builder pay toward closing costs?
It depends on the loan. For a Fannie Mae conventional loan on a primary residence, it’s 3%, 6% or 9% depending on your down payment. FHA allows up to 6% of the sales price. VA limits seller concessions to 4% of reasonable value, not counting normal closing costs and market-rate discount points.
Can builder incentives cover the down payment?
Generally no. Fannie Mae doesn’t allow interested party contributions toward the down payment, and FHA doesn’t allow them toward the 3.5% minimum required investment. They can go toward closing costs, prepaid items and rate buydowns within each program’s limits.
What are the 2026 loan limits in Fernley and Dayton?
Both are in Lyon County. For a one-unit home in 2026, the conforming limit is $832,750 and the FHA limit is $638,250. Veterans with full entitlement have no VA loan limit. A loan amount above $832,750 is generally a jumbo loan.
Does Nevada’s property tax cap apply to a newly built home?
Not in its first fiscal year. Nevada’s tax cap doesn’t apply to new construction in that year. Starting the following fiscal year, a home you own and live in as your primary residence can qualify for the 3% cap on yearly tax bill increases.
Bring us the builder’s offer
Send us the builder’s incentive sheet and its lender’s Loan Estimate, and we’ll show you how our options compare. There’s no cost to talk. Rates and approval are confirmed only after underwriting.
Get pre-approved online, send us a message, or call Mark at (775) 829-7979. We’re open Monday through Friday, 8 AM to 6 PM, and Saturday, 8 AM to 1 PM (closed Sunday).
Sources
Facts in this article come from the public sources below, checked November 2026. Rules and limits can change, so confirm them before you sign a contract.
- CFPB: Find the right home (new construction and builder lenders)
- CFPB: Request and review multiple Loan Estimates
- 12 CFR 1024.15 (RESPA): Affiliated business arrangements
- Fannie Mae Selling Guide B3-4.1-02: Interested Party Contributions
- Fannie Mae Selling Guide B4-1.2-05: Verifying Completion and Postponed Improvements
- HUD Handbook 4000.1: FHA Single Family Housing Policy (interested party contributions)
- HUD Mortgagee Letter 2020-36: FHA new construction definitions and documents
- VA: Funding fee and closing costs (seller concessions)
- VA: Purchase loans
- VA: Home loan limits and entitlement
- Storey County Assessor: Nevada property tax cap (NRS 361.471 to 361.4735)
- Clark County Assessor: Tax abatement (NRS 361.4723; new construction and the following fiscal year)
- FHFA: Conforming Loan Limit Values for 2026
- HUD: 2026 FHA forward mortgage limits
Mark Lamerdin
US Financial, LLC
1325 Airmotive Way, Suite 175-D, Reno, NV 89502
Phone: (775) 829-7979
Web: usfinancial.net/contact
NMLS 372129 | NMLS 308667 | NV MLD 171 | CA DFPI CFL License #195553 | Equal Housing Opportunity
US Financial, LLC is a mortgage broker licensed in Nevada and California. Loans made or arranged pursuant to a California Financing Law license. This article is for general information only and is not a commitment to lend, an offer of credit, or a guarantee of any rate, fee, or approval. All loans subject to credit approval, underwriting, and property appraisal. Program guidelines, loan limits, and documentation requirements are set by Fannie Mae, Freddie Mac, HUD/FHA, VA, and investors and may change. This is not tax or legal advice; confirm property tax questions with the Lyon County Assessor and builder contract terms with your own advisors.