Homebuilder Wants to Help Pay Student Loans

Homebuilder Wants to Help Pay Student Loans

Major homebuilder Lennar wants to help Millennials get out from under debilitating student loan debt and onto the road toward owning a home. However, financing planners and loan experts say this is just swapping out student loan debt for mortgage debt, which isn’t exactly helping the situation.

Lennar’s home buyers could receive up to $13,000 toward student loans, which would be up to 3 percent of the home’s purchase price.

According to USA Today, “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.”

Loan experts are wondering, though, why Lennar isn’t just offering discounts on houses rather than these payments. It’s also uncertain how the 3 percent discount will be absorbed.

Image via The Student Loan Report.

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