Trading Student Loans for Mortgages

Home builders are testing new tactics to lure young buyers. Per an article in the WSJ, one such firm will pay down a portion (3% was cited) of a first-time-buyer’s outstanding student loans:

“A subsidiary called Eagle Home Mortgage plans to introduce on Tuesday a program under which Miami-based Lennar will pay off a significant chunk of the student loan of a borrower who purchases a home from them. … Such programs come with the risk, however, that the incentive drives up the price of new homes.”

It will be interesting to see if this becomes a trend that catches on with other home builders.

debt home prices mortgage student loans
Source: Laura Kusisto | "Home Builder Lures Millennials With Offer to Help " | The Wall Street Journal | 09/26/2017 | Visit