How Eastwood Homes Uses This Clause
Eastwood Homes purchase agreements have been documented to include affiliated lender incentive steering provisions. Eastwood Homes conditions closing cost assistance of up to $20,000 on the buyer financing through an Eastwood-designated preferred lender. The incentive amount varies by division and inventory type. Buyers who choose an outside lender forfeit these incentives, creating financial pressure to use the builder's lending partner regardless of whether competing rates or terms are more favorable. (Source: eastwoodhomes.com/specials)
This provision typically appears within the purchase agreement alongside other terms that may limit buyer remedies. Because Eastwood Homes operates across multiple states, the enforceability and practical impact of this clause varies depending on where the home is located.
Eastwood Homes's scale means contract templates are largely standardized across its operations. A clause identified in one market's contract is likely present in other markets' contracts, though local addenda may modify the terms.
Builder-Specific Details
Combined with Deposit Forfeiture
Incentives tied to using the preferred lender may be lost if the buyer switches lenders, and the deposit terms may reflect this.
Regional Contract Patterns
Eastwood Homes operates in a more focused geographic footprint. Contract terms may vary somewhat between markets, but documented patterns tend to be consistent across the builder's operating states.
Standard Form Contract
This clause appears in Eastwood Homes's standard purchase agreement, which is generally presented on a take-it-or-leave-it basis. Buyers typically have limited ability to negotiate individual terms, though making the request in writing is still advisable.
State-by-State Enforceability
Enforceability of this clause varies by state. The following reflects Eastwood Homes's operating states.
| State | Status | Note |
|---|---|---|
| North Carolina | Likely Enforceable | North Carolina permits builders to offer incentives conditioned on using a preferred lender, subject... |
| South Carolina | Likely Enforceable | South Carolina permits builders to offer incentives conditioned on using a preferred lender, subject... |
| Virginia | Likely Enforceable | Virginia permits builders to offer incentives conditioned on using a preferred lender, subject to... |
Related Clauses in Eastwood Homes Contracts
This clause often works in combination with other provisions in Eastwood Homes's purchase agreements.
Incentives tied to using the preferred lender may be lost if the buyer switches lenders, and the deposit terms may reflect this.
What Buyers Can Do
- Compare rates with independent lenders. The builder's affiliated lender may offer closing cost credits or other incentives, but the overall loan terms may not be the most competitive available.
- Calculate the true cost of lender incentives. A closing cost credit of several thousand dollars may be offset by a higher interest rate over the life of the loan. Run the numbers for your specific situation.
- Have the full contract scanned before signing. This clause is often one of several interconnected provisions in Eastwood Homes contracts that collectively limit buyer remedies. A contract scan can identify all of them.