Buying a home is one of the biggest financial decisions most people will ever make. While newly built homes often promise modern designs and fewer maintenance issues, thousands of homeowners report discovering construction issues, warranty disputes, and poor customer service after moving in. Today, we're taking a closer look at some of the biggest names in homebuilding—LGI Homes, D.R. Horton, Clayton Homes, Pulte Homes, and Lennar—to see if they live up to their promises or if the reality is much different. Key Insights All five companies have earned low ratings on PissedConsumer, with ratings hovering around 1.4 to 1.7 stars out of 5. Builders often fail to take responsibility for defects, leaving homeowners frustrated and without the proper resolutions to issues that should have been addressed under warranty. Approximately 40% of the cost of a building project is attributed to poor quality. Criteria Clayton Homes D.R. Horton Lennar Pulte Homes LGI Homes Number of Reviews 786 768 589 547 561 Rating* 1.4 ⭐⭐ 1.5 ⭐⭐ 1.5 ⭐⭐ 1.7 ⭐⭐ 1.7 ⭐⭐ Monetary Loss $7.5M $7.2M $5.4M $5.7M $2.7M Issue Resolution Rate 6% (500) 6% (640) 4% (499) 2% (409) 4% (403) Pros Home designs, floorplans, house selection Home designs, locations, floorplans Sales representatives, home designs, locations Home designs, floorplans, sales representatives Home designs, locations, price Cons Poor workmanship, defective buildings, customer service Poor workmanship, deceptive warranty, misleading information False advertising, poor customer service, poor build quality Poor quality building materials, customer service, poor maintenance quality Poor customer service, deceptive warranty, shady sales tactics Clayton Homes: “No one knows how to play” Clayton Homes specializes in modular and manufactured homes. Since 1956, they’ve built over 1.5 million homes, offering an affordable solution for many buyers. But here’s the thing: affordability doesn’t always equal durability. Clayton Homes markets their properties as energy-efficient, with some even carrying LEED certification. However, the real-world performance of these homes can vary according to buyers. Issues such as faulty plumbing and electrical systems have been reported. According to PissedConsumer reviews, while some customers appreciate the home designs, floor plans, and appearance, frequent complaints include poor manufacturing quality, cheaply made materials, and the sale of damaged, defective homes. Clayton Homes rating Clayton Homes has 774 reviews on PissedConsumer, with 92% negative. This has resulted in an average rating of 1.4 out of 5 stars. Clayton Homes customer service is also poorly rated, and consumers report that only 6% of issues are resolved after a phone call. In review #7173450, the user shared their frustration about the company: …it in a nutshell, they all talk a good game but when it comes down to brass tacks, no one knows how to play. Clayton Homes warranty To address these concerns, Clayton Homes offers a 1-year limited warranty covering materials and workmanship. Some models also include a 5-year extended service plan for critical systems like HVAC and roofing. While these warranties might provide some peace of mind, it’s important to consider how well they address the specific issues buyers have faced. For example, one buyer has found it difficult to get Clayton to honor these warranties, with repairs often delayed or incomplete. After moving in, he discovered plumbing and electrical defects. Clayton Homes financing When it comes to financing, Clayton Homes offers in-house mortgages through Vanderbilt Mortgage. While this simplifies the process, some buyers have expressed concerns over misleading terms and high interest rates. Despite its affordability, Clayton Homes has been at the center of many legal disputes. One case involves a couple, who sued the company over water damage in their manufactured home. D.R. Horton: “Take too long to solve” D.R. Horton has been in business since 1978 and has constructed around 900,000 homes, making it one of the largest homebuilders in the U.S. But does its size guarantee quality? D.R. Horton offers everything from budget-friendly homes to higher-end options, boasting durable roofing, energy-efficient windows, and ENERGY STAR® appliances. They emphasize modern plumbing and electrical systems designed to meet industry standards. Yet, despite these claims, some homeowners report issues like uneven floors, faulty plumbing, and significant delays in repairs. Customers appreciate the floorplans, design, and convenient locations, but many are disappointed with the workmanship, deceptive warranty practices, and the company’s lack of follow-through on promises. One customer (#7277123) has been complaining about concrete cracks. However, they got no response even though “its been 5 years” and the situation is only “getting worse.” D.R Horton rating With 759 reviews on PissedConsumer, D.R. Horton has a 1.5-star rating. Most customers remain dissatisfied after contacting the company. Surprisingly, despite 92% of negative reviews, 50% of users would still recommend D.R. Horton to others. D.R Horton warranty D.R. Horton backs its work with a 10-year structural warranty and a one-year warranty covering things like plumbing, electrical, and HVAC. Sounds reassuring, right? However, some homeowners say the response time can be slow, and the repair quality doesn’t always meet expectations. After moving into a brand-new D.R. Horton home, a reviewer started noticing serious issues. First, the foundation began to shift, then the HVAC system broke down repeatedly. As if that wasn’t enough, drainage problems soon followed, adding to the list of headaches. D.R. Horton financing D.R. Horton offers in-house financing, but some reviews mention concerns about transparency. The company has also been involved in lawsuits over issues like mold and water damage. Lennar: “They are the worst” Lennar is one of the oldest and most established builders, dating back to 1954. With over a million homes under their belt and operations in 26 states, you’d think the experience would mean smooth sailing. But does it? Lennar homes are often outfitted with modern features like ENERGY STAR® windows and smart home tech, especially in their higher-end communities. But here’s the catch: their more affordable homes, particularly those aimed at first-time buyers, don’t always include these upgrades. According to PissedConsumer users, the company's strengths include its sales representatives, home design, and location. However, common complaints highlight Lennar’s refusal to accept responsibility, poor customer service, and lack of care for customers. Lennar rating Lennar has 589 reviews on PissedConsumer, and 91% of those reviews are negative. This way, the company earned 1.5 stars out of 5, reflecting widespread customer dissatisfaction. Only 8% of users who contacted Lennar customer support reached a real person. Interestingly, 25% of users would still recommend Lennar to a friend or colleague. Lennar warranty Lennar offers a one-year warranty for workmanship and materials, covering things like plumbing and electrical. There's also a two-year warranty for major systems and a 10-year structural warranty for serious issues like foundation defects. Sounds reassuring, right? However, actual experiences with these warranties can vary. In review #6207417, the customer reported losing a $5,000 earnest money deposit after walking away from a home purchase due to what they described as construction defects. They also criticized the lending process, citing repeated document requests, multiple credit checks, and excessive employment verification. Lennar delivered a shoddy constructed home with an undersized a/c unit and bad grading. We had to walk away after they refused to make it right and then tried to push us into closing. 100% Bad business practices. And it doesn’t stop there. Lennar has faced lawsuits, like a notable case in 2020, where Florida homeowners sued over water damage due to poor exterior cladding. Lennar financing Lennar, as D.R. Horton, offers in-house financing through Lennar Mortgage, formerly known as Eagle Home Mortgage, providing options like conventional, FHA, VA, and jumbo loans. They also have incentives for closing costs and special deals for qualified buyers. Pulte Homes: “Go somewhere else” Next up is Pulte Homes, which has built more than 775,000 homes since 1950. They specialize in family-friendly suburban communities, and they claim their homes often meet ENERGY STAR® standards, which are supposed to help with long-term energy savings. Pulte Homes claims to use high-quality materials like durable roofing, advanced insulation, energy-efficient windows, and high-performance HVAC systems. However, a homeowner who bought a Pulte home left a review #7149519 on PissedConsummer about ongoing drainage problems that result in flooding. Four (4) years with drainage problem and no resolution! Pulte built seven houses above me with rain spouts emptying water directly onto the ground with water flowing down the hill and flooding my yard. In both cases, Pulte's customer service response was disappointing, offering only quick fixes that didn’t solve the underlying problems. These experiences showcase poor construction and customer service, leaving homeowners frustrated and stuck with an unresolved issue. Pulte Homes rating With 547 reviews on PissedConsumer, Pulte Homes has earned an average rating of 1.7 out of 5 stars. One recurring complaint is unresponsive customer service, with only 2% of issues successfully resolved. Pulte Homes warranty Pulte Homes offers a 10-year structural warranty for major components like footings, walls, and roof sheathing. They also provide a 2-year warranty for plumbing, electrical, and HVAC systems and a 1-year warranty for materials and workmanship. However, customers often report long wait times for repairs and inconsistent responses to warranty claims. One homeowner had severe mold issues in his home that worsened his asthma. Despite multiple requests, Pulte has yet to take meaningful action, and Terrell continues to live in dangerous conditions. Situations like this raise questions about the builder’s commitment to quality and customer care. Pulte has also been involved in several legal disputes. According to myfloridalegal.com, they settled a $4.7 million lawsuit over building code violations and warranty denials, agreeing to pay for repairs and improve construction practices. Pulte Homes financing In terms of financing, Pulte offers in-house options through Pulte Mortgage, which can be convenient. However, as always, it’s a good idea to compare rates from other lenders before making a final decision. LGI Homes: “Lie to homeowners' faces” LGI Homes is a newer builder, founded in 2003. By now, they’ve built over 50,000 homes, primarily catering to first-time buyers with affordable, entry-level homes. Their move-in-ready model offers homes complete with landscaping and appliances, located in fast-growing areas like Texas, Arizona, and Florida. LGI Homes claims to use durable materials such as composite roofing, vinyl siding, and engineered wood flooring to keep costs low while maintaining a decent quality standard. The homes also feature basic energy-efficient systems like standard-grade units and low-E windows. While some customers find the location, homes, and pricing appealing, many express dissatisfaction with poor customer service, unresponsive support, and an overall lack of care from the company. Nevertheless, 25% of users would still recommend LGI Homes to others. LGI Homes rating LGI Homes has 561 reviews and holds an average rating of 1.7 out of 5 stars. However, the number of dissatisfied customers is still high, reaching 85% of negative reviews. The customer service experience is also varied, as only 4% of issues are successfully resolved. LGI Homes warranty LGI offers a 10-year structural warranty, but their 1-year materials warranty has failed some homeowners. Slow customer service has been a frequent complaint, further complicating the resolution process for homeowners. One homeowner, who shared review #6945484, is highly dissatisfied with the builder's handling of what they described as serious structural issues and warranty claims. They never gave us the permitting proofs and refuse to address a structural failure in our roof that is causing water leaks and electrical shorts. All they say is 'it's out of warranty.' We have a 10-year warranty for structural issues, and they are not honoring it. LGI Homes financing On the financing side, LGI also offers in-house financing through LGI Mortgage, simplifying the process with low down payments and flexible credit score requirements. However, some buyers have reported feeling pressured into financing without fully understanding the terms, which emphasizes the need to look around for better rates. How to Pick the Right Builder Buying a home isn’t just a financial decision—it’s emotional, and it’s personal. With so much on the line, it’s essential to make an informed choice. Here are a few key takeaways to help you decide: Checking Reviews: Reviews from actual homeowners can provide a fuller picture than marketing materials, showing both the good and the bad. Talk to several builders to get an idea of what is possible, create a pros and cons list, think through the decision, plan for potential delays, and leave budget room for any increases in construction materials. Understanding Warranties: Knowing the details of a builder’s warranty and how responsive they are to claims can help avoid future frustration. Comparing Financing: Exploring external financing options might lead to more competitive rates or clearer terms than in-house options. Inspecting Legal History: Builders with a history of lawsuits related to construction quality might indicate a risk. Checking legal records could reveal patterns to be aware of. Talking through concerns: Monitor your home throughout the construction process. If you have questions about something you see in your home, send pictures or videos to the builder’s agent. The same goes for documenting issues. Make notes, take photos, and shoot videos. Save it all. Involving a Building Inspector: Bringing in an independent building inspector could help you spot things that might not be obvious, like foundation cracks, electrical issues, or plumbing problems. It’s a simple way to ensure there aren’t any hidden surprises that could end up costing you later. Contacting the home builders’ association: If you need more information before or during the home building process, you can find lots of advice from the NAHB, the National Association of Home Builders. There are checklists to help if you want to start the process of finding a home builder that’s right for you. Choose the Right Home Builder for Your Needs Purchasing a home is a significant decision, and trusting a builder is a critical part of that process. While major homebuilders like Lennar, D.R. Horton, Clayton Homes, Pulte Homes, and LGI Homes offer attractive pricing and modern amenities, consumer reviews paint a picture of dissatisfaction with both the construction quality and customer service. Before you make this life-changing investment, make sure you’ve considered not just the price, but what’s behind the walls. Let us know in the comments which builder you’re considering, or write a review about your experience. *Disclaimer: Ranking and statistics are based on our users’ review texts and Pissed Consumer posters’ reviews. Also, a company’s rating is calculated using a mathematical algorithm that evaluates the information in the profile, including users’ rating, the number of resolved issues, the number of company’s responses, etc. The algorithm is subject to change in the future.