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.