Builder Offering To Pay Off Student Loans For Buyers

Dated: 10/13/2017

Views: 73

Builder Offering to Pay Off Student Loans for Buyers

Builder Offering to Pay Off Student Loans for Buyers | MyKCM

Millennials are on track to become the most educated generation in history. This means they are also the generation with the most student debt. Depending on the type of degree earned, as well as the prestige of the institution attended, there are some millennials who graduate college with what equates to a mortgage payment.

For those first-time buyers, and even some move-up buyers, who took advantage of the First-Time Homebuyer Tax Credit in 2008, there is an interesting program being introduced by Lennar Home Builders and Eagle Home Mortgage.

“Borrowers with Eagle Home Mortgage's Student Loan Debt Mortgage Program can direct up to 3% of the purchase price (up to $13,000) to pay their student loans when they buy a new home from Lennar, one of the nation's largest homebuilders. The contribution doesn’t directly increase the purchase price of the home or add to the balance of the loan.”

The program allows borrowers, whose credit and income requirements qualify, to put down as low as 3% and have a maximum loan amount of $424,100. At the time of closing, Lennar contributes up to 3% to pay down student loans incurred while attending universities, colleges, community colleges, trade schools and other certificate-granting programs.

Jimmy Timmons, President of Eagle Home Mortgage, gave more context about the reasons behind the creation of the program,

"Americans are more burdened than ever by student loans, with $1.3 trillion in outstanding student loans spread out among 42 million borrowers.  

Particularly with millennial buyers, people who want to buy a home of their own are not feeling as though they can move forward. Our program is designed to relieve some of that burden and remove that barrier to owning a home."

According to the Wall Street Journal, “housing observers said other builders are likely to look to mimic the program, which could help lure more of the critical first-time-buyer segment into home purchases.”

Bottom Line

If you are one of the many millennials who may have delayed purchasing your first home, or feel stuck in a house that no longer fits your needs, there are programs and options available to help you achieve your dream!

Blog author image

Raul Acuna - CA BRE #01708572

Raul Acuña - Raul has been in the Real Estate Industry since 2005. Raul began working at an REO brokerage before opening his own REO company in 2010. Raul has a business degree from Cal Poly Pomona, ....

Want to Advertise on this Site?

Latest Blog Posts

4 Reasons To Sell This Spring

Some Highlights: Buyer demand continues to outpace the supply of homes for sale which means that buyers are often competing with one another for the few listings that are available! Housing

Read More

The Number 1 Reason To Sell Now Before Spring

The #1 Reason to Sell Now Before SpringThe price of any item (including residential real estate) is determined by ‘supply and demand.’ If many people are looking to buy an item and the supply of

Read More

What Impact Will The New Tax Code Have On Home Values

What Impact Will the New Tax Code Have on Home Values?Every month, CoreLogic releases its Home Price Insights Report. In that report, they forecast where they believe residential

Read More

Thinking Of Selling Now Is The Perfect Time

Thinking of Selling? Now is the Perfect TimeIt is common knowledge that a great number of homes sell during the spring-buying season. For that reason, many homeowners hold off on putting their homes

Read More