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MIAMI, Fla. and ARLINGTON, Va., Oct. 30, 2017 /PRNewswire/ —
Lennar Corporation (NYSE: LEN and LEN.B) and CalAtlantic Group, Inc. (NYSE: CAA) today announced that their respective boards of directors have unanimously approved a definitive merger agreement pursuant to which each share of CalAtlantic stock will be exchanged for 0.885 shares of Lennar Class A common stock in a transaction valued at approximately $9.3 billion, including $3.6 billion of net debt assumed.
The business combination will create the nation’s largest homebuilder with the last twelve months of revenues in excess of $17 billion and equity market capitalization, based on current market prices, of approximately $18 billion. The combined company will control approximately 240,000 homesites and will have approximately 1,300 active communities in 49 markets across 21 states, where approximately 50% of the U.S. population currently lives.
It is currently anticipated that the transaction will generate annual cost savings and synergies of approximately $250 million, with approximately $75 million achieved in fiscal year 2018. These synergies are expected to be achieved through direct cost savings, reduced overhead costs and the elimination of duplicate public company expenses. Additional savings are also expected through production efficiencies, technology initiatives, and the roll out of Lennar’s digital marketing and dynamic pricing programs.
Under the terms of the merger agreement, each share of CalAtlantic stock will be converted into the right to receive 0.885 shares of Lennar Class A common stock. Based on the closing price of Lennar’s Class A common stock on the NYSE on October 27, 2017, the implied value of the stock consideration is $51.34 per share, representing a 27% premium to CalAtlantic’s closing price that same day. CalAtlantic’s stockholders will also have the option to elect to exchange all or a portion of their shares for cash in the amount of $48.26 per share, subject to a maximum cash amount of approximately $1.2 billion. CalAtlantic stockholders will receive Lennar stock unless they exercise an option to receive cash. On a pro forma basis, CalAtlantic stockholders are expected to own approximately 26% of the combined company. The transaction is expected to close in the first calendar quarter of 2018.
Stuart Miller, Chief Executive Officer of Lennar, said, “This combination is first and foremost to enhance shareholder value. The transaction is accretive before deal costs in fiscal year 2018 and significantly accretive in fiscal year 2019. The combined company will have a strong balance sheet and generate significant cash flow available to pay down debt and repurchase shares, which will improve returns on capital and equity.”
Mr. Miller continued, “This combination increases our scale in the markets that we already know and in the products we already offer to entry level, move up and active adult customers. As a result, the combined company will have a top 3 ranking in 24 of the top 30 markets in the country.”
“Accordingly, our overall company size and local critical mass will yield significant benefits through efficiencies in purchasing, access to land, labor and overhead allocation to a greater number of deliveries. The combined land portfolio will position the company for strong profitability for years to come, as we continue to benefit from a solid homebuilding market, supported by job and wage growth, consumer confidence, low levels of inventory, and a production deficit.”
Larry Nicholson, President and Chief Executive Officer of CalAtlantic, said, “Our combination with Lennar underscores the quality and attractiveness of the CalAtlantic brand and people, and the business our talented team has worked hard to build. Lennar is a well-respected name in the homebuilding industry and their team shares a deep commitment to innovation, quality, integrity and a focus on a superior customer experience.”
Rick Beckwitt, President of Lennar, said, “We have great respect for what Scott Stowell, Larry Nicholson and the CalAtlantic team have accomplished, building upon the rich legacies of Standard Pacific and Ryland. Our discussions over the last several months have only reinforced our conviction that by joining forces, we will achieve new heights in our industry and create significant value for all of our shareholders. We share common cultures and deep traditions of delivering quality and value, doing the right thing and exceeding the expectations of our customers. We look forward to executing our strategy as a larger and even stronger company and welcoming a very talented group of CalAtlantic associates to the Lennar family.”
The transaction is subject to approval by Lennar and CalAtlantic stockholders. Stuart Miller and the Miller Family Trusts have agreed to vote their 41.4% voting interest in Lennar in favor of the merger. MP CA Homes LLC, an affiliate of MatlinPatterson Global Opportunities Partners III L.P., has agreed to vote its 25.4% voting interest in CalAtlantic in favor of the merger. Additionally, MP CA Homes has agreed to exercise the cash election for at least the number of shares to cause the maximum cash consideration amount to be fully subscribed by electing stockholders. Any cash election by MP CA Homes will be subject to proration into shares of Lennar Class A common stock, along with all other stockholders of CalAtlantic, who elect cash, if the number of cash elections by CalAtlantic stockholders exceeds the maximum cash amount. Upon completion of the transaction, Mr. Stowell, CalAtlantic’s Executive Chairman, will join the Lennar Board of Directors.
Citi served as financial advisor for Lennar and Goodwin Procter LLP acted as Lennar’s legal counsel. JP Morgan Securities LLC served as financial advisor to CalAtlantic and Gibson, Dunn & Crutcher LLP acted as CalAtlantic’s legal counsel.
Conference Call
A conference call to discuss this release will be held at 11:00 a.m. Eastern Time on October 30, 2017. The call will be accessible via telephone by dialing 517-308-9039 and entering 5723593 as the confirmation number. A presentation for the call can be accessed through Lennar’s website at www.lennar.com. A replay of the conference call will also be available later that day by dialing 203-369-3781.
About Lennar
Lennar Corporation, founded in 1954, is one of the nation’s largest builders of quality homes for all generations. Lennar builds affordable, move-up and retirement homes primarily under the Lennar brand name. Lennar’s Financial Services segment provides mortgage financing, title insurance and closing services for both buyers of Lennar’s homes and others. Lennar’s Rialto segment is a vertically integrated asset management platform focused on investing throughout the commercial real estate capital structure. Lennar’s Multifamily segment is a nationwide developer of high-quality multifamily rental properties. Previous press releases and further information about Lennar may be obtained at the “Investor Relations” section of Lennar’s website, www.lennar.com.
About CalAtlantic
CalAtlantic Group, Inc., one of the nation’s largest and most respected homebuilders, offers well-crafted homes in thoughtfully designed communities that meet the desires of customers across the homebuilding spectrum, from entry level to luxury, in 43 Metropolitan Statistical Areas spanning 19 states. With a trusted reputation for quality craftsmanship, an outstanding customer experience and exceptional architectural design earned over its 50 year history, CalAtlantic Group, Inc. utilizes its over five decades of land acquisition, development and homebuilding expertise to acquire and build desirable communities in locations that meet the high expectations of the company’s homebuyers.Additional information about CalAtlantic Group, Inc. is available by visiting www.calatlantichomes.com.
Forward Looking Statements
Some of the statements in this press release are “forward-looking statements,” as that term is defined in the Private Securities Litigation Reform Act of 1995, including statements regarding the expected time of the completion of the transaction. These forward-looking statements, which are based on current expectations, estimates and projections about the industry and markets in which Lennar and CalAtlantic operate and beliefs of and assumptions made by Lennar management and CalAtlanticmanagement, involve uncertainties that could significantly affect the financial results of Lennar or CalAtlantic or the combined company. Words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates,” and variations of such words and similar expressions are intended to identify such forward-looking statements, which generally are not historical in nature. Such forward-looking statements include, but are not limited to, statements about the anticipated benefits of the proposed merger between Lennar and CalAtlantic, including future financial and operating results, the attractiveness of the value to be received by CalAtlantic stockholders, the combined company’s plans, objectives, expectations and intentions, and the percentage the CalAtlantic stockholders are expected to own of the combined company. All statements that address operating performance, events or developments that we expect or anticipate will occur in the future — including statements relating to expected synergies, improved market positioning and ongoing business strategies — are forward-looking statements. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict. Although we believe the expectations reflected in the forward-looking statements are based on reasonable assumptions, we can give no assurance that our expectations will be attained and therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. Some of the factors that may affect outcomes and results include, but are not limited to: (i) Lennar’s and CalAtlantic’s ability to obtain requisite approval from their respective stockholders; (ii) Lennar’s and CalAtlantic’s ability to satisfy the conditions to closing of the proposed merger; (iii) the occurrence of any event, change or other circumstances that could give rise to the termination of the merger agreement; (iv) availability of financing and capital; (v) failure to realize the benefits expected from the proposed acquisition; (vi) the risk that the cost savings and any other synergies from the acquisition may not be fully realized or may take longer to realize than expected; (vii) failure to promptly and effectively integrate the acquisition; (viii) other risks related to the completion of the proposed merger and actions related thereto; and (ix) the risks detailed in CalAtlantic’s and Lennar’s filings with the Securities and Exchange Commission (the “SEC”), including the “Risk Factors” sections of CalAtlantic’s Annual Report on Form 10-K for the year ended December 31, 2016 and Lennar’s Annual Report on Form 10-K for the fiscal year ended November 30, 2016, and their respective most recent Quarterly Reports on Form 10-Q. There can be no assurance that the merger will be completed, or if it is completed, that it will close within the anticipated time period or that the expected benefits of the merger will be realized. It is not possible for the management of either company to predict all the possible risks that could affect it or to assess the impact of all possible risks on the two companies’ businesses.Neither Lennar nor CalAtlantic undertakes any duty to update any forward-looking statements appearing in this document.
Additional Information about the Proposed Merger and Where to Find It
This communication relates to the proposed merger pursuant to the terms of the Agreement and Plan of Merger, dated as of October 29, 2017, by and among CalAtlantic Group, Inc., Lennar Corporation and Cheetah Cub Group Corp.
In connection with the proposed merger, Lennar expects to file with the SEC a registration statement on Form S-4 that will include a joint proxy statement of Lennar and CalAtlantic that also constitutes a prospectus of Lennar, which joint proxy statement/prospectus will be mailed or otherwise disseminated to Lennar and CalAtlantic stockholders when it becomes available. Lennar and CalAtlantic also plan to file other relevant documents with the SEC regarding the proposed merger. INVESTORS ARE URGED TO READ THE JOINT PROXY STATEMENT/PROSPECTUS AND OTHER RELEVANT DOCUMENTS FILED WITH THE SEC IF AND WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE MERGER. You may obtain a free copy of the joint proxy statement/prospectus (if and when it becomes available) and other relevant documents filed by Lennar and CalAtlantic with the SEC at the SEC’s website at www.sec.gov. Copies of the documents filed by Lennar with the SEC will be available free of charge on Lennar’s website at www.lennar.com or by contacting Allison Bober, Investor Relations, at 305-485-2038. Copies of the documents filed by CalAtlantic with the SEC will be available free of charge on CalAtlantic’s website at www.calatlantichomes.com or by contacting Michelle Varela, Investor Relations, at 949-789-1651.
Certain Information Regarding Participants
Lennar and CalAtlantic and their respective directors and executive officers and other members of management and employees may be deemed to be participants in the solicitation of proxies in respect of the proposed merger. You can find information about Lennar’s executive officers and directors in Lennar’s definitive proxy statement filed with the SEC on March 7, 2017 in connection with its 2017 annual meeting of stockholders and in Form 4s of Lennar’s directors and executive officers filed with the SEC. You can find information about CalAtlantic’s executive officers and directors in CalAtlantic’s definitive proxy statement filed with the SEC on March 31, 2017 in connection with its 2017 annual meeting of stockholders and in Form 4s of CalAtlantic’s directors and executive officers filed with the SEC. Additional information regarding the participants in the proxy solicitation and a description of their direct and indirect interests, by security holdings or otherwise, will be included in the joint proxy statement/prospectus and other relevant documents filed with the SEC if and when they become available. You may obtain free copies of these documents from Lennar or CalAtlantic using the sources indicated above.
No Offer or Solicitation
This document shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offering of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the U.S. Securities Act of 1933, as amended.
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El Dorado Hills, Sacramento – November 2017 – Last weekend Lennar Sacramento launched the first phase release of new homes for sale at their highly sought-after Reflections, the newest community of homes at the Heritage El Dorado Hills masterplan. Reflections offers active adults aged 55 and better a great opportunity to own a new home designed specifically with their lifestyle in mind. These beautiful homes offer Lennar’s incredible Everything’s Included® features, Thoughtful Design℠ details and great community amenities.
“We released this highly anticipated first phase of new homes at Reflections for sale early, due to high demand,” said Michelle Velky, Vice President of Sales and Marketing for Lennar Sacramento. “We’ve continued to see the desire for new homes created specifically for active adults rise, and are thrilled to be able to offer more neighborhoods in our El Dorado Hills masterplan that offers homeshoppers unmatched opportunity. Our residences here embody the perfect combination of Thoughtful Design℠ details, valuable standard features, a stunning location and a resort-inspired lifestyle to match.”
Reflections at Heritage El Dorado Hills presents homeshoppers with a distinctive collection of five single-story floorplans to choose from. These flexible home designs range in size from approximately 1,137 to 1,650 square feet, two to three bedrooms and two bathrooms. The first phase of home sales will enjoy pre-model prices available for only a limited time. Move-in dates for this first phase of new homes that are now selling are set for early this spring.
Each unique new home at Reflections showcases Lennar’s new Wi-Fi CERTIFIED Home Design™ and elevated Everything’s Included® package, which now offers integrated home automation features at no additional cost. These one-of-a-kind residences contain mapped out and built-in wireless access points throughout the home that work seamlessly with name-brand home automation products to offer a truly connected living experience. Homeshoppers will still find the signature Everything’s Included® products they’ve come to love at no additional price, such as quartz countertops, stainless steel appliances including refrigerator, solar electric packages and more as standard.
Additionally, Lennar Sacramento includes a series of Thoughtful Design℠ details in every new home at their Heritage communities. These details are built into the home and were created specifically for individuals 55 and better who might have changing lifestyle needs. These details include extra lighting throughout the home, wider doorways and hallways, lower appliance design, built-in backing for reinforcement bars in bathrooms should they be needed in the future, walk-in showers with hand-held sprays and more.
Residents also enjoy a resort-inspired lifestyle at Heritage El Dorado Hills, with exclusive access to pristine amenities such as an approximate 5,000-square foot residents-only fitness center, The Retreat, with state-of-the-art equipment and a covered pool, spa, aerobics rooms and locker room. Outside The Retreat are tennis, pickle ball and bocce ball courts, outdoor seating, a fire pit and an area for community events. In the future phases, Heritage El Dorado Hills may offer a dog park, community garden, multi-use trail system and other elements that support an active and healthy lifestyle.
Schedule an appointment online and learn more by visiting www.lennar.com/sacramento or calling 916-562-3411. Speak with a New Home Consultant to discover how you can take advantage of early pricing during this first phase release. Model homes are expected to open in January 2018 at Heritage El Dorado Hills, located at 9039 Heritage Parkway.
With hundreds of communities nationwide and homes designed for first-time, move-up and luxury homebuyers, Lennar has grown to become one of the nation’s leading and most respected homebuilders. Lennar has a longstanding history of building homes of enduring quality in only the most well planned and desirable locations throughout the country.
Lennar’s Edgewood at Natomas Meadows is a great single-family home community with a variety of new homes for sale, including the Hydrangea plan which offers a move-in date before year end. Interested homeshoppers are encouraged to visit Edgewood to see the community firsthand and discover great year-end specials on select homesites.
“The North Natomas area of Sacramento is in a great location for anyone looking to put down roots,” said Laura Kilgore, Director of Marketing for Lennar Sacramento. “The Hydrangea plan also offers a lot of room, including dual master suites!”
The expansive Hydrangea plan offers 2,786 square feet of living space in a two-story layout. In total, this home provides three-and-a-half bathrooms, a private dining room, upstairs loft, gourmet kitchen and four bedrooms including dual master suites – one downstairs and one on the second level. Every bedroom enjoys its own walk-in closet
The downstairs master suite is a perfect space for older children, live-in extended family or overnight guests and offers dual vanities in the bathroom and a spacious walk-in closet. The upstairs master bathroom features a garden tub and separate shower for added luxury.
The spacious great room flows easily into the gourmet kitchen with center island and a dining room on the other side of the kitchen is great for family meals or entertaining. The upstairs loft gives this home more space to be used as a casual living area, place for the kids, home office and more.
This home comes with added value through the Everything’s Included® program which includes stylish features and upgrades at no additional cost. These include solar electric systems, stainless steel appliances including refrigerator, granite or quartz kitchen countertops, upscale cabinetry and more.
Located at 4504 Acacia Ridge Street, off Del Paso Road and Gateway Park Boulevard in Sacramento, schedule an appointment to tour this home by visiting www.lennar.com/sacramento or calling 916-905-1614 today.
With hundreds of communities nationwide and homes designed for first-time, move-up and luxury homebuyers, Lennar has grown to become one of the nation’s leading and most respected homebuilders. Lennar has a longstanding history of building homes of enduring quality in only the most well planned and desirable locations throughout the country.
If you’re in the market for a new home in the Greater Tucson area, now is a great time to buy. Lennar Tucson offers a variety of quick move-in homes available that if you act quickly, could have you settled in your new home just in time to celebrate the holidays.
“Now is an ideal time to make a move on purchasing your new home,” said Tom Gansheimer, Division President for Lennar Tucson. “There is still just enough time left to have you celebrating the holiday season and New Year in your brand new home. Not to mention that we have a variety of home styles and sizes available, so there’s definitely a right fit out there waiting for you.”
In the city of Marana, two Lennar communities offers quick or move-in ready homes for sale. At Boulder Pass, Homeshoppers can choose between the Whitney or the Oracle home designs which range in size approximately from 2,203 to 2,594 square feet. Gladden Farms offers four distinctive floorplans, with sizes ranging from 1,870 to 3,116 square feet.
In Oro Valley, Eagles Summit has a collection of homes available in four distinctive floorplans. These homes range in size approximately from 2,594 to 3,091 square feet of living space, with up four bedrooms three bathrooms and three-car garages. Lennar’s Next Gen® – The Home Within A Home® is offered here in the Oracle plan. Designed specifically for multigenerational families, it comes with an attached private suite that has its own separate entrance, living room, bedroom, bathroom and kitchenette.
Tucson offers two communities with quick move-in homes that are now selling: Mountain Vail and Robb Hill Estates. At Mountain Vail, homeshoppers have three distinctive floorplans: the Columbus, Cortes and Freedom plans. Among these three home designs, sizes vary approximately from 2,247 to 2,693 square feet. At Robb Hill Estates, the Clark, Canyon and Ironwood floorplans are available, offering homes that range in size approximately from 2,207 to 3,006 square feet.
These quick move-in homes with reduced prices won’t last forever. Make your move now and celebrate the holidays season with your loved ones in your new home for years to come. For more information on these home designs or communities, visit www.lennar.com/tucson.
With hundreds of communities nationwide and homes designed for first-time, move-up and luxury homebuyers, Lennar has grown to become one of the nation’s leading and most respected homebuilders. Lennar has a longstanding history of building homes of enduring quality in only the most well planned and desirable locations throughout the country.
Shafter, Calif. – November 2017 – Lennar will host an afternoon of fall-inspired fun on Saturday, November 18th at Flight Park within Gossamer Grove, Shafter’s largest masterplanned community. The event is open to the public and community members are invited to enjoy a rockwall, carnival games, and face painting! Fall Fest will run from 1 – 4 p.m.
“We can’t wait to celebrate the annual Fall Fest at Gossamer Grove’s Flight Park,” said Susan Wilke, Vice President of Sales and Marketing for Lennar Central Valley. “This is a great opportunity to see the lifestyle Gossamer Grove has to offer — and to meet your potential new neighbors!”
The event will have plenty of activities for the whole family! Come meet some furry friends at the petting zoo, win a game of corn hole and enjoy the beautiful fall season. Additionally, the model homes will be open and available for touring. Gossamer Grove offers prospective homebuyers a unique opportunity to purchase a new home in a masterplanned community in northwest Bakersfield.
Community members or anyone interested in attending the event is encouraged to visit the Gossamer Grove Facebook page for updates. Flight Park is located within Gossamer Grove, off 7th Standard and Calloway.
Gossamer Grove is a masterplanned community that will be built atop more than 1,000 acres and will include more than 3,000 homes, two schools, ten parks including Flight Park, meant to pay homage to Shafter’s deep-rooted history in aviation, and commercial and retail development, including city services.
Gossamer Grove will be built in phases, the first of which is now selling and has quick move-in homes available! The first phase consists of three series of home styles by Lennar, The Cambridge Collection, The Chateau Series and The California Series.
For more information on this community or to view move-in ready homes, visit www.lennar.com/gossamergrove.
For a list of new home communities throughout the greater Bakersfield area, visit www.lennar.com/bakersfield.
With hundreds of communities nationwide and homes designed for first-time, move-up and luxury homebuyers, Lennar has grown to become one of the nation’s leading and most respected homebuilders and proudly remains steadfast in their commitment toward quality, value and integrity. Lennar has a longstanding history of building exceptional homes in only the most well planned and desirable locations throughout the country.
The holidays are a time of celebration with friends, family and loved ones, but it’s also a time to reflect and give back to those in need. Here are a few simple ways you can make an impact today to help others tomorrow.
Most people have blood to spare, but there simply is not enough to go around. Help ensure that blood is on the shelf when it is needed and you will end up being someone’s hero. In fact, you could help save more than one life with just one donation. Click here to learn more (http://www.redcrossblood.org/donating-blood).
Visit VolunteerMatch (https://www.volunteermatch.org/?l=United+States) to be connected to organizations with local events that match your interests.
Time to clean out the closets, and get rid of all that excess “stuff” that is just lying around the house. Donating is easy. Simply visit one of these websites to schedule a dropoff or pickup.
GreenDrop
GreenDrop converts lightly used clothing and household items into critical funds for great American charities (like the American Red Cross, Purple Heart, the National Federation of the Blind and St. Vincent de Paul.
Goodwill Industries of Greater New York and Northern New Jersey
Goodwill Industries empowers individuals with disabilities and other barriers to employment to gain independence through the power of work.
Habitat for Humanity®
Donate goods to Habitat ReStores, home improvement stores that accept small and large donations of new or gently used furniture, appliances, housewares, building materials and more. Procededs from the sales of these items help Habitat’s work in the community and around the world.
https://www.habitat.org/restores/donate-goods
You Give Goods
YouGiveGoods makes charitable giving easy and completely transparent with our free, innovative online drive system where supporters shop online for a cause. A personalized YGG drive gets needed goods to nonprofits and makes a tangible impact in your community.
Donation Town
Donation Town allows you to select from a directory of charities that offer a donation pickup service.
Don’t forget the pets!
Pets are in need, too. Donate pet supplies or food to your local animal shelter. Visit http://njshelter.org or the http://njspca.org to learn more.
With Thanksgiving fast-approaching we thought we’d share this super simple video on how to carve the perfect turkey, courtesy of RealSimple.com. (Steps also outlined below for easy reference!)
Follow These Steps
Most things that seem too good to be true usually are, but not when it comes to Lennar’s Everything’s Included®, which provides included features that are options from other builders as deluxe standard equipment in every home at a tremendous value. We’ve done the research so you don’t have to, which helps to remove the unnecessary hassles and headaches from the homebuying process.
Homeowners can rest easy knowing they will receive the most desired new home features that typically cost thousands of dollars at no additional cost. Why? Because Lennar takes great pride in offering the highest quality homes at the best possible value. Lennar also believes that energy efficiency should not be an upgrade, so these features are also included among the extras/add-ons in every home. After all, what saves you money can also help save the environment, so Lennar homes include a wealth of green features that add a lifetime of value. Lennar partners with the most reputable makers of popular, luxurious household décor to give you a home that is equally stylish and modern.
Everything’s Included®, and every service sees you home. Lennar supports your home purchase with a range of subsidiary services, through our affiliated mortgage and title companies, and extends special programs and online services that carry over into your homeownership experience. Lennar and its reputable members will deliver you a simplified homeownership experience.
Everything’s Included doesn’t mean “one size fits all”. Each Lennar community is unique and has its own personality, and therefore offers its own particular set of Everything’s Included features. So why not find a community that’s right for you? Visit a Lennar community in New Jersey or Pennsylvania to take the first step.
Has student loan debt held you back from owning a new home? If so, Lennar can change all that. We are extremely excited to launch our new Student Loan Mortgage Program, created by our preferred lender Eagle Home Mortgage. The program allows select homebuyers to receive up to three percent of the purchase price of their new Lennar home to pay off student loans. This will help make the dream of homeownership a reality for so many people.
According to a recent joint study on millennial student loan debt released by the National Association of Realtors® and nonprofit American Student Assistance (ASA), student loan debt is holding back millennials from financial decisions and personal milestones, such as adequately saving for retirement, changing careers, continuing their education, marrying and having children. In fact, only 20 percent of millennial respondents currently own a home. Among the 80 percent of millennials in the survey who said they do not own a home, 83 percent believe their student loan debt has affected their ability to buy. The median amount of time these millennials expect to be delayed from buying a home is seven years, and overall, 84 percent expect to postpone buying by at least three years.
“The tens of thousands of dollars many millennials needed to borrow to earn a college degree have come at a financial and emotional cost that’s influencing millennials’ housing choices and other major life decisions,” according to Lawrence Yun, NAR chief economist. “Sales to first-time buyers have been underwhelming for several years now, and this survey indicates student debt is a big part of the blame.”
Don’t let student debt hold you back any longer. Stop by one of our new home communities in New Jersey or Pennsylvania today to learn how you can take advantage of our new Student Loan Mortgage Program.
Limited Time Only, the availability of student debt assistance through the Student Loan Debt Mortgage Program is limited. Offer available on select and qualifying inventory homes. The Student Loan Debt Mortgage Program is a Fannie Mae pilot program and is currently only available to purchasers of Lennar Homes, LLC (“Lennar”) that finance through Eagle Home Mortgage, LLC (“Eagle”). You are NOT required to use Eagle as a condition for purchase of a Lennar home. However, as a pilot program, the Student Loan Debt Mortgage Program is only available through Eagle. This offer is subject to borrower meeting approval guidelines. The Student Loan Debt Mortgage Program and seller contribution limits are subject to certain Fannie Mae terms, conditions and restrictions. Rates and terms are subject to change without notice. Contact your loan officer for Student Loan Debt Mortgage Program details and your new home consultant for home purchase details. You are free to shop around to determine that you are receiving the best services and the best rate for these services. Lennar and Eagle have business relationships with each other. Lennar and Eagle are, directly or indirectly, wholly owned by Lennar Corporation. For additional information please visit their websites www.Lennar.com and www.eaglehm.com. This offer is subject to change and may be withdrawn or discontinued at any time without notice.
