Should I buy a new home built by LGI Homes?

Hi sweet friend,

If you don't know me, my name is Jordan Schilleci, and not only am I a local real estate agent, but I am also a broker here in the Houston Area. I love helping individuals, couples, and families figure out the best home for them in the best neighborhood for their needs. My goal isn't just to be a REALTOR®, but to be a valuable resource! I love helping folks buy a home, regardless of their stage in life, and I particularly enjoy assisting them in comparing neighborhoods, suburbs, and builders. Often, I get to do this with folks who are relocating, and I love it.

However, today I wanted to address a frequently asked question: “Should I buy a new home with LGI Homes?”

This is a crucial question, and I'd like to also explore some recent facts to present you with options or paths to consider if you are looking to build a new home or purchase an inventory home in the Houston Area.

To answer the question, “Should I buy a home built by LGI Homes?” let’s talk about a recent investigation by Hunterbrook. If you’re not familiar with Hunterbrook, they’re a relatively new but ambitious organization that blends investigative journalism with finance. Their newsroom, Hunterbrook Media, publishes deep-dive investigations, while their affiliated hedge fund, Hunterbrook Capital, can take investment positions related to those stories. It’s an unusual model that has sparked debate, but it also allows them to back their reporting with data-driven analysis that can influence both markets and public awareness.

In their findings, they suggest that LGI Homes may be targeting low-income renters with deceptive ads that promise unrealistically low prices, then pressuring them into expensive homes through highly scripted and aggressive sales tactics. LGI Homes advertises monthly payments that appear no higher than rent, but they are leaving out all taxes, insurance, and fees. Once those costs were added, many buyers saw their bills increase by 30% to 70% more than advertised. Another significant finding is that Hunterbrook's analysis revealed that LGI buyers were almost four times more likely to face foreclosure than typical FHA borrowers—a group already considered high-risk. In one Texas county, LGI accounted for 7% of foreclosure auctions last year despite building just 1% of homes there.

Wanting to learn more about LGI Homes?

LGI typically builds move-in-ready homes and then aggressively markets them. Their ads often target renters with slogans about paying “less than rent” to own. When you visit one of their communities, the sales process can feel fast-paced and highly scripted. On-site agents are trained to get you excited and to encourage writing an offer the same day, often by highlighting limited inventory or special incentives that “expire soon.” Understanding this approach can help you slow things down and avoid making a rushed decision.

What to Watch Out For When Buying a Home From LGI Homes

One of LGI’s biggest selling points is easy financing. They often promote very low monthly payments and offer incentives when you use their preferred lender. The catch? Those advertised payments sometimes exclude property taxes, HOA fees, homeowner’s insurance, and mortgage insurance (PMI). Once you add those in, the actual monthly cost can be significantly higher than you expected. Incentives such as “closing cost assistance” may also come with higher interest rates compared to what you could get by shopping with other lenders. A smart move is to ask for a Loan Estimate that includes everything — principal, interest, taxes, insurance, PMI, and HOA — and compare it with an outside lender before signing.

Other Considerations: Resale Value

Another piece to weigh is resale value. LGI tends to develop in fringe or fast-growing areas where land is more affordable. These neighborhoods can appreciate more slowly, especially in the first few years, because amenities, retail, and schools may still be catching up. Some buyers have found it harder to resell quickly or at a substantial profit compared to homes in more established areas. Additionally, HOA dues and MUD (Municipal Utility District) taxes can rise as the community matures. Before committing, check recent resale comps for LGI homes in the area and see how well they’ve held their value.

If buying a home built by LGI Homes is your best option, then I recommend…

If buying a home built by LGI Homes is your best option, then I recommend you follow a few steps:

1. Work with a local real estate agent, broker, or realtor. If you are in the Houston Area or Suburbs, I would love to assist you. My number is 832-493-6685. If you are not local, I can still connect you with a trusted advisor and real estate agent.
2. Hire an independent home inspector. I recommend one licensed here in Texas. The license I recommend is provided by TREC (Texas Real Estate Commission).
3. Ask for the current tax rate and HOA dues, and consider whether the MUD is new (new districts can have higher rates that decrease slowly). I, or your real estate agent, can help you with this.
4. Check the master plan or future development map to see what’s planned for schools, shopping, and road access.

Keeping Perspective

It’s worth noting that some buyers have good experiences with LGI — the homes can be move-in ready, with upfront pricing that feels approachable for first-time buyers. The key is going in fully informed. Don’t feel pressured to sign on the spot, and have someone on your side who can review the contract, confirm the real numbers, and look at the neighborhood’s long-term outlook. Working with a buyer’s agent (like me) typically costs you nothing (almost all builders pay me my commission) and gives you a professional advocate who can help you navigate incentives, financing, and resale potential so you make the best decision for your future.

What are some other good options if you are no longer considering LGI Homes?

The list below focuses on starter homes and neighborhoods, but if you are looking for homes above $300,000, there are even more options that I can discuss with you. Feel free to call/text/email me.

Katy, Texas

1. Village Builders
2. KB Home
3. D.R. Horton

Conroe, Texas

1. D.R. Horton
2. Coventry Homes
3. Meritage Homes
4. Brightland Homes
5. Davidson Homes
6. Adam Homes
7. Century Communities
8. Stylecraft
9. CasteRock
10. Legend Homes
11. First American Homes
12. Kendall Homes

Magnolia, Texas

1. Chesmar Homes
2. Coventry Homes
3. D.R. Horton
4. M/I Homes
5. Brightland Homes
6. Saratoga Homes
7. Centex
8. Starlight Homes
9. DSLD Homes
10. AshtonWoods
11. Empire Homes

Fulshear, Texas

1. D.R. Horton

Hockley, Texas

1. Brightland Homes
2. D.R. Horton
3. Empire Homes
4. KB Home
5. David Weekley Homes
6. Taylor Morrison
7. Coventry Homes
8. Adams Homes

Montgomery, Texas

1. Meritage Homes
2. Starlight Homes
3. Centex
4. Beazer Homes
5. M/I HOmes
6. Century Communities

Alvin, Texas

1. KB Home
2. Smith Douglas Homes
3. Coventry Homes
4. D.R. Horton

Iowa Colony, Texas

1. Chesmar Homes
2. D.R. Horton

Angleton, Texas

1. Adams Homes
2. Coventry Homes
3. Century Communities
4. CastleRock Communities
5. D.R. Horton
6. KB Home

New Caney, Texas

1. Meritage Homes
2. K. Hovnanian Homes
3. M/I Homes
4. Coventry Homes
5. HIstoryMaker Homes
6. D.R. Horton

Pinehurst, Texas (Tomball Area)

1. Brightland Homes
2. CastleRock Communities
3. HistoryMaker Homes

Porter, Texas

1. Century Communities
2. Starlight

Richmond, Texas

1. Starlight Homes
2. D.R. Horton

Bay City, Texas

1. Century Communities

Baytown, Texas

1. Meritage Homes
2. Sullivan Brothers Builders
3. Pulte Homes

Rosenberg, Texas

1. D.R. Horton
2. Taylor Morrison

Tomball, Texas

1. Beazer Homes
2. HistoryMaker Homes
3. M/I Homes

Waller, Texas

1. Century Communities
2. K. Hovnanian Homes
3. Ashton Woods
4. Empire Homes
5. Centex
6. Brightland Homes

Willis, Texas

1. Smith Douglas Homes
2. Legend Homes
3. D.R. Horton
4. M/I Homes
5. Century Communities
6. Kendall Homes

Rosharon, Texas

1. Saratoga Homes
2. Coventry Homes

Brookeshire, Texas

1. Starlight Homes
2. Century Communities
3. Tricoast Homes
4. CastleRock Communities
5. Legend Homes
6. D.R. Horton

So what's next?

Thank you so much for reading this blog post. Buying new construction right now is a smart decision. Most builders are offering huge incentives and even opportunities to have a reduced interest rate. I would be happy to help you navigate new construction, so please don't hesitate to reach out.

➜ Schedule a call at https://byjoandco.com/call or email me at [email protected]. Also, feel free to call/text. My personal cell number is 832-493-6685.

We are so happy you found our little corner of the interwebs. We look forward to y'all reaching out to us. We love to answer questions and welcome them. Thoughtfully written for you. Hugs, Jo.