Company: LGIH
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0001580670-25-000076
Chunk: 86

Company: LGI Homes, Inc.
Filing Date: 2025-11-04
Form: 10-Q
Item: Part I, Item 8
Chunk 86
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 management, these matters will not have a material effect on our consolidated financial position, results of operations or cash flows.LGI Living Loan AgreementOn July 23, 2025, the Company’s indirect, wholly owned special purpose subsidiary LGI Living SFR entered into the Loan Agreement with Evergreen Residential Capital, LLC, as lender. The loan under the Loan Agreement is unconditionally guaranteed as to payment and performance by the Company under a limited recourse guaranty with respect to (i) certain losses and liabilities to the extent such losses or liabilities are actually incurred by the lender and (ii) the entire amount of the loan upon the occurrence of certain events.  The Loan Agreement requires that the Company, as guarantor, maintain (i) liquidity of not less than 15% of the loan amount and (ii) maintain net worth in excess of 50% of the loan amount. The loan under the Loan Agreement is secured by certain of LGI Living SFR’s single-family rental properties. The Loan Agreement provides for a secured non-recourse loan for up to $50.0 million, which can be increased at the request of LGI Living SFR by up to $75.0 million (for a total of $125.0 million), subject to the terms and conditions of the Loan Agreement. As of September 30, 2025, LGI Living SFR had $50.0 million of borrowings outstanding under the Loan Agreement.

Land Deposits We have land purchase contracts, generally through cash deposits, for the right to purchase land or lots at a future point in time with predetermined terms. We do not have title to the property, and obligations with respect to the land purchase contracts are generally limited to the forfeiture of the related nonrefundable cash deposits. The following is a summary of our land purchase deposits included in pre-acquisition costs and deposits (in thousands, except for lot count):September 30, 2025December 31, 2024Land deposits and option payments(1)$19,221 $29,040 Commitments under the land purchase option and deposit contracts if the(1) purchases are consummated$339,425 $653,861 Lots under land options and land purchase contracts(1)9,41617,582(1)Includes land banking financing arrangements, see Note 2 and Note 3 for more details regarding real estate not owned.As of September 30, 2025 and December 31, 2024, approximately