A new home in Maryland from Lennar.
A study by nonprofit NeighborWorks America finds that 25 percent of millennials say they are delaying a home purchase because of student loan debt. Now, a homebuilder and mortgage company want to lighten that burden.
Lennar Corporation and subsidiary Eagle Home Mortgage introduced the Student Loan Debt Mortgage Program on a trial basis on Tuesday for those who purchase a new Lennar home. Lennar will pay up to 3 percent of the purchase price of a new Lennar home, up to $13,000 worth of a buyer’s outstanding student loan debt.
“Particularly with millennial buyers, people who want to buy a home of their own are not feeling as though they can move forward,” Jimmy Timmons, President of Eagle Home Mortgage, said in a statement. “Our program is designed to relieve some of that burden and remove that barrier to owning a home.”
As the Wall Street Journal reports, Fannie Mae has also committed to backing these mortgages and will monitor whether the debt forgiveness is factored into the appraisal process. Any loan forgiveness payments won’t inflate the purchase price or add to the loan balance.
This program joins Loftium, another homebuyers’ assistance program in which down payment help is provided in exchange for a share of future Airbnb earnings at the purchased property. Fannie Mae is backing mortgages that Loftium partners in as well.
“This is not without risk,” Jonathan Lawless, Fannie Mae’s vice president of customer solutions, told the Journal. “Builders always want to provide more money and incentives for people to buy their homes. It has the potential to start distorting values.”
Whether this program will encourage similar initiatives from other homebuilders, it could also encourage more first-time buyers to enter the market, thus exacerbating the housing shortage if builders aren’t delivering more homes.
This article originally published at http://dc.urbanturf.com/articles/blog/debt_forgiven_homebuilder_aims_to_lure_buyers_with_student_loan_forgiveness/13054
Most Popular... This Week • Last 30 Days • Ever
Landmark Theatres is in the final stages of negotiations that would have it operating... read »
The housing market last month was not as hot as September 2020, but that is probably ... read »
The next phase on the Center Block would deliver 166 apartments and 221 hotel rooms.... read »
DC's crane count still ranks as one of the highest among U.S. cities despite a declin... read »
The latest installment of Above Asking revisits two recently-featured listings in the... read »
UrbanTurf has compiled virtual looks at large new developments around the DC region.... read »
The preferred mortgage product among most home buyers is the fixed-rate mortgage. How... read »
STAY DC provides rental aid and utility payment grants to at-risk District residents ... read »
The yet-to-be-built home may set a new bar for luxury in the residential real estate ... read »
Federal Realty plans to eventually file a planned unit development application for th... read »
With this weekend's DC houseboat tour a day away, UrbanTurf thought it only fitting t... read »
President Obama travels to Denver this morning to sign the stimulus bill that has bee... read »
In this week's installment of Ask An Agent, a reader wonders if there is a rule for h... read »
As The Wharf prepares to begin construction, DC's houseboat community heads to its ne... read »
In this week's installment of Ask An Agent, a reader asks a fairly common question th... read »
DC Real Estate Guides
Short guides to navigating the DC-area real estate market
We've collected all our helpful guides for buying, selling and renting in and around Washington, DC in one place. Visit guides.urbanturf.com or start browsing below!
Intro guides for first-time home buyers
Awesome and unusual real estate from across the DC Metro