Exhibit 10.32
     AMENDMENT NO. 1, dated as of July 28, 2005 (this “Amendment No. 1”), to the
Credit Agreement dated as of October 26, 2004 (as amended, supplemented, amended
and restated or otherwise modified from time to time) (the “Credit Agreement”)
among Technical Olympic USA, Inc., a Delaware corporation (the “Borrower”),
Citicorp North America, Inc., as administrative agent (in such capacity, the
“Administrative Agent”) and the Requisite Lenders listed on the signature pages
hereto. Capitalized terms used and not otherwise defined herein shall have the
meanings assigned to them in the Credit Agreement.
     WHEREAS, Section 7.02(i) of the Credit Agreement limits the then cost value
(defined as the aggregate cost plus all additions minus all returns thereon in
cash) of any net cash Investments by the Borrower in, or loans or contributions
to, all Unaffiliated Joint Ventures and Unaffiliated Unrestricted Subsidiaries,
to 25% of the Adjusted Consolidated Tangible Net Worth of the Borrower and its
Restricted Subsidiaries;
     WHEREAS, pursuant to Section 10.1 of the Credit Agreement, the consent of
the Requisite Lenders is required to effect this Amendment No. 1;
     NOW, THEREFORE, in consideration of the premises and covenants contained
herein and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto, intending to
be legally bound hereby, agree as follows:
     Section 1. Amendments.
     (a) Section 1.1: Defined Terms.
     Section 1.1 of the Credit Agreement is hereby amended by deleting the last
sentence of the definition of “Indebtedness” in its entirety and replacing it
with the following:
     “Nothwithstanding the foregoing, “Indebtedness” shall not include (x) the
face amount of any undrawn Performance Letters of Credit or the amount of any
obligations in respect of surety bonds or performance bonds, in each case to the
extent unmatured, (y) Indebtedness Associated with Assets Not Owned, or
(z) obligations with respect to options to purchase real property that have not
been exercised.”
     (b) Section 7.2: Investments.
     Section 7.2 of the Credit Agreement is hereby amended by deleting clause
(i) thereof in its entirety and replacing it with the following:

 

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     "(i) net cash Investments (including letters of credit) in, contributions
and loans to Unaffiliated Joint Ventures and Unaffiliated Unrestricted
Subsidiaries, the then cost value of which shall not at any time exceed in the
aggregate for all such Investments 35% of the Adjusted Consolidated Tangible Net
Worth of the Borrower and its Restricted Subsidiaries (with cost value defined
as the aggregate cost plus all additions minus all returns thereon in cash);
provided that on the date which is the eighteen month anniversary of the
effective date of Amendment No. 1 to this Agreement, (x) the foregoing
percentage shall be reduced to 30% and (y) after giving effect to clause (x),
the Borrower shall be in compliance with this clause (i) on and as of such
date;”
     Section 2. Representations and Warranties. The Borrower represents and
warrants to the Lenders as of the date hereof that:
     (a) The execution and delivery of this Amendment No. 1 by the Loan Parties
has been duly authorized.
     (b) Neither the execution or delivery by the Loan Parties of this Amendment
No. 1, nor compliance by the Loan Parties with the terms and provisions hereof,
(i) will contravene any applicable provision of any law, statute, rule or
regulation, or any order, writ, injunction or decree of any court or
Governmental Authority, (ii) will conflict or be inconsistent with, or result in
any breach of, any of the terms, covenants, conditions or provisions of, or
constitute a default under, the terms of any indenture, mortgage, deed of trust,
loan agreement, credit agreement or any other material agreement, contract or
instrument to which it or any of its Subsidiaries is a party or by it or any of
its Subsidiaries’ property or assets is bound or to which they or any of its
Subsidiaries may be subject, or (iii) will violate any provision of its
respective certificate of incorporation or bylaws or the certificate of
incorporation or bylaws (or equivalent organizational or other charter
documents) of any of its Subsidiaries.
     (c) Before and after giving effect to this Amendment No. 1, the
representations and warranties set forth in the Credit Agreement, are true and
correct in all respects with the same effect as if made on the Effective Date,
except to the extent such representations and warranties expressly relate to an
earlier date.
     (d) At the time of and after giving effect to this Amendment No. 1, no
Default or Event of Default has occurred and is continuing.
     Section 3. Conditions to Effectiveness. This Amendment No. 1 shall become
effective on the date (the “Effective Date”) on which each of the following
conditions is satisfied (or waived in accordance with Section 10.1 of the Credit
Agreement):
     (a) The Administrative Agent (or its counsel) shall have received from
Lenders constituting the Requisite Lenders and each of the other parties hereto
either (i) a counterpart of this Amendment No. 1 signed on behalf of such party
or (ii) written evidence

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satisfactory to the Administrative Agent (which may include telecopy
transmission of a signed signature page of this Amendment No. 1) that such party
has signed a counterpart of this Amendment No. 1;
     (b) All corporate and other proceedings taken or to be taken in connection
with this Amendment No. 1 and all documents incidental thereto, whether or not
referred to herein, shall be satisfactory in form and substance to the Requisite
Lenders and their counsel.
     Section 4. Expenses. The Borrower agrees to reimburse the Administrative
Agent for its out-of-pocket expenses incurred by it in connection with this
Amendment No. 1, including the reasonable fees, charges and disbursements of
Cahill Gordon & Reindel llp, counsel for the Administrative Agent.
     Section 5. Counterparts. This Amendment No. 1 may be executed in any number
of counterparts and by different parties hereto on separate counterparts, each
of which when so executed and delivered shall be deemed to be an original, but
all of which when taken together shall constitute a single instrument. Delivery
of an executed counterpart of a signature page of this Amendment No. 1 by
facsimile transmission shall be effective as delivery of a manually executed
counterpart hereof.
     Section 6. Applicable Law. THIS AGREEMENT SHALL BE GOVERNED BY, CONSTRUED
AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.
     Section 7. Headings. The headings of this Amendment No. 1 are for purposes
of reference only and shall not limit or otherwise affect the meaning hereof.

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     IN WITNESS WHEREOF, the parties hereto have caused this Amendment No. 1 to
be duly executed as of the date first above written.

            TECHNICAL OLYMPIC USA, INC.,
as Borrower
      By:   /s/ David J. Keller         Name:   David J. Keller        Title:  
Chief Financial Officer   

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            ENGLE HOMES DELAWARE, INC.
ENGLE HOMES RESIDENTIAL CONSTRUCTION, LLC
ENGLE/JAMES LLC
MCKAY LANDING, LLC
NEWMARK HOMES BUSINESS TRUST
NEWMARK HOMES PURCHASING, L.P.
NEWMARK HOMES, L.L.C.
NEWMARK HOMES, L.P.
PREFERRED BUILDERS REALTY, INC.
SILVERLAKE INTERESTS, L.C.
TOI, LLC
TOUSA ASSOCIATES SERVICES COMPANY
TOUSA DELAWARE, INC.
TOUSA FINANCING, INC.
TOUSA HOMES, INC.
TOUSA VENTURES, LLC,
TOUSA, LLC
TOUSA HOMES, L.P.
TOUSA INVESTMENT #1, LLC
TOUSA INVESTMENT #2, LLC
TOUSA INVESTMENT #3, LLC
TOUSA INVESTMENT #4, LLC
TOUSA INVESTMENT #5, LLC
TOUSA INVESTMENT #1, INC.
TOUSA INVESTMENT #2, INC.
TOUSA HOMES INVESTMENT #1, L.P.
TOUSA HOMES INVESTMENT #1, INC.
TOUSA HOMES INVESTMENT #2, INC.
TOUSA HOMES INVESTMENT #2, LLC
TOUSA MID-ATLANTIC INVESTMENT, LLC,
as Subsidiary Guarantors
                                By:   /s/ David J. Keller         Name:   David
J. Keller        Title:   Vice President   

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            CITICORP NORTH AMERICA, INC.
as Administrative Agent and Lender
      By:   /s/ Jeanne M. Craig         Name:   Jeanne M. Craig        Title:  
Vice President   

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            BANK OF AMERICA, N.A., as Lender
      By:   /s/ Mark W. Lariviere         Name:   Mark W. Lariviere       
Title:   Senior Vice President   

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            BRANCH BANKING AND TRUST COMPANY, as Lender
      By:   /s/ Carmen De Essaye         Name:   Carmen De Essaye       
Title:   Senior Vice President     

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            CALYON NEW YORK BRANCH, as Lender
      By:   /s/ Attila Coach         Name:   Attila Coach        Title:  
Managing Director              By:   /s/ James Gibson         Name:   James
Gibson        Title:   Managing Director   

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            COMERICA BANK, as Lender
      By:   /s/ Charles Weddell         Name:   Charles Weddell        Title:  
Vice President   

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            COMPASS BANK, AN ALABAMA BANKING
CORPORATION, as Lender
      By:   /s/ Christopher M. Reynolds         Name:   Christopher M. Reynolds 
      Title:   Assistant Relationship Manager   

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            DEUTSCHE BANK TRUST COMPANY AMERICAS,
as Lender
      By:   /s/ Brenda Carey         Name:   Brenda Carey        Title:   Vice
President              By:   /s/ Stephen P. Lapham         Name:   Stephen P.
Lapham        Title:   Managing Director   

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            GUARANTY BANK, as Lender
      By:   /s/ Jenny Ray Stilwell, CPA         Name:   Jenny Ray Stilwell     
  Title:   Vice President   

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            JPMORGAN CHASE BANK, as Lender
      By:   /s/ Michael P. O’Keefe         Name:   Michael P. O’Keefe       
Title:      

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            KEYBANK NATIONAL ASSOCIATION, as Lender
      By:   /s/ Andrew D. Stickney         Name:   Andrew D. Stickney       
Title:   Vice President   

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            NATIONAL CITY BANK, as Lender
      By:   /s/ James M. Osberg         Name:   James M. Osberg        Title:  
Vice President   

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            PNC BANK, NATIONAL ASSOCIATION, as Lender
      By:   /s/ Douglas G. Paul         Name:   Douglas G. Paul        Title:  
Senior Vice President   

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            SOVEREIGN BANK, as Lender
      By:   /s/ T. Gregory Donohue         Name:   T. Gregory Donohue       
Title:   Senior Vice President   

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            WACHOVIA BANK, N.A., as Lender
      By:   /s/ Catherine L. Roess         Name:   Catherine L. Roess       
Title:   Vice President   

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            WASHINGTON MUTUAL BANK F.A., as Lender
      By:   /s/ Ann D. Brehony         Name:   Ann D. Brehony        Title:  
Vice President     

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