Student loan debt has been an obstacle for many potential home buyers, and Lennar Corp. is trying to do something about it, the Wall Street Journal reported today. A subsidiary called Eagle Home Mortgage plans today to introduce a program under which it will pay off a significant chunk of the student loan of a borrower who purchases a home from Miami-based Lennar. Housing experts 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. Eagle will make a payment to a buyer’s student loans of as much as 3 percent of the purchase price, up to $13,000. The contribution doesn’t directly increase the purchase price of the home or add to the balance of the loan. Such programs come with the risk, however, that the incentive drives up the price of new homes.
