Builder Offering To Pay Off Student Loans For Buyers

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Real Estate Agent with REMAX Real Estate Experts 317824
Builder Offering to Pay Off Student Loans for Buyers
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!

Source: Keeping Current Matters | The KCM Crew 101117

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Debe Maxwell, CRS
www.AtHomesCharlotte.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
Charlotte Homes for Sale - Charlotte Neighborhoods

This is great 'out-of-the-box" thinking Jennifer. Millennials saddled with student loan debt are afraid to take that first step in buying a home. This is a wonderful program to help them stop throwing money away on rent and enable them to become homeowners.

Oct 11, 2017 03:01 PM #1
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Pete Xavier with X Group Real Estate Advocates
Investments to Luxury - Pacific Palisades, CA
Outstanding Agent Referrals-Nationwide

Now is they could also pay off those cosmetic surgery and enhancement procedure bills! Paying down student debt, that's a good start!

Oct 11, 2017 03:13 PM #2
Rainmaker
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Mel Ahrens, MBA, Kelly Right Real Estate
Kelly Right Real Estate - Hood River, OR
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There has to be a catch.  This phrase caught my attention: "The contribution doesn’t directly increase the purchase price of the home or add to the balance of the loan.”  Ok, does something indirectly affect the price or the loan balance?  Another area probably affected is the interest rate; most likely a higher interest rate due to the contribution. The builder is not reducing their margins unless they have excess inventory. 

Oct 11, 2017 07:01 PM #3
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Jennifer Carstensen

I specialize in selling houses (License: 317824)
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