<PAGE>

                                                                    EXHIBIT 99.6
SCHULER HOMES, INC.                                            D.R. HORTON, INC.

                                 ELECTION FORM

                                      AND

                             LETTER OF TRANSMITTAL

                   FOR CERTIFICATE(S) REPRESENTING SHARES OF

                              SCHULER HOMES, INC.

                             IN CONNECTION WITH THE
                          CONVERSION BY MERGER OF ITS

                 CLASS A COMMON STOCK AND CLASS B COMMON STOCK

                                      INTO

                             CASH AND COMMON STOCK

                                       OF

                               D.R. HORTON, INC.,

                                       OR

                                    ALL CASH

                                       OR

                     ALL COMMON STOCK OF D.R. HORTON, INC.
                      (IN EACH CASE SUBJECT TO PRORATION)

             PLEASE FOLLOW CAREFULLY THE ACCOMPANYING INSTRUCTIONS

HOLDERS OF CLASS A COMMON STOCK OR CLASS B COMMON STOCK OF SCHULER HOMES, INC.
("SCHULER") WHO DO NOT WISH TO MAKE AN ELECTION NEED NOT SUBMIT THIS ELECTION
FORM AND LETTER OF TRANSMITTAL (THIS "ELECTION FORM AND LETTER OF TRANSMITTAL")
AT THIS TIME. IF A HOLDER OF CLASS A COMMON STOCK OR CLASS B COMMON STOCK DOES
NOT MAKE AN ELECTION, EACH SHARE OF SCHULER COMMON STOCK HELD BY SUCH
NON-ELECTING STOCKHOLDER ("NON-ELECTION SHARES") WILL BE CONVERTED IN THE MERGER
INTO THE BASE MERGER CONSIDERATION OF $4.09 IN CASH AND A FRACTION OF A SHARE OF
COMMON STOCK OF D.R. HORTON, INC. ("D.R. HORTON") AS DESCRIBED BELOW. AFTER THE
EFFECTIVE TIME OF THE MERGER, SEPARATE TRANSMITTAL DOCUMENTS WILL BE SENT TO
HOLDERS OF SCHULER SHARES WHO DID NOT RETURN THE ELECTION FORM AND LETTER OF
TRANSMITTAL.

This Election Form and Letter of Transmittal must be accompanied by unsigned
certificates representing the common stock of Schuler when you make an election
with respect to the merger consideration you will receive in connection with the
Merger. The election procedure is described in General Instruction 4. See
General Instruction 11 for lost or destroyed certificate(s).

IF YOU ARE A BENEFICIAL OWNER, BUT NOT THE RECORD OWNER, OF SCHULER COMMON
STOCK, YOU CANNOT MAKE A VALID ELECTION BY RETURNING THIS ELECTION FORM AND
LETTER OF TRANSMITTAL YOURSELF. BENEFICIAL OWNERS OF SCHULER COMMON STOCK MUST
INSTRUCT THE RECORD OWNER OF SUCH COMMON STOCK REGARDING THEIR ELECTION
PREFERENCE. AN ELECTION MAY NOT BE MADE FOR LESS THAN ALL OF THE SHARES
BENEFICIALLY OWNED BY YOU.
                                        1
<PAGE>

<Table>
<Caption>
                                          BOX 1 ELECTION. SEE GENERAL INSTRUCTION 4.
                                        DESCRIPTION OF SHARES SURRENDERED AND ELECTION
     NAME(S) AND ADDRESS(ES) OF
        REGISTERED HOLDER(S)                                         CERTIFICATE(S) SURRENDERED
(PLEASE FILL IN, IF BLANK, EXACTLY AS        (PLEASE INDICATE WHETHER CLASS A COMMON STOCK OR CLASS B COMMON STOCK, AND
  NAME(S) APPEAR ON CERTIFICATE(S))                             ATTACH ADDITIONAL LIST IF NECESSARY)
                                        CERTIFICATE
                                         NUMBER(S)        NUMBER OF BASE          NUMBER OF
                                                              MERGER            STOCK ELECTION       NUMBER OF CASH ELECTION
                                                          CONSIDERATION             SHARES                    SHARES
                                                         ELECTION SHARES    (SUBJECT TO PRORATION)    (SUBJECT TO PRORATION)
<S>                                   <C>              <C>                  <C>                    <C>
                                           TOTAL
                                           SHARES
</Table>

BOX 2                                 SIGNATURE
--------------------------------------------------------------------------------
THIS ELECTION FORM AND LETTER OF TRANSMITTAL MUST BE SIGNED BY THE REGISTERED
HOLDER(S) EXACTLY AS THE NAME(S) APPEAR(S) ON THE STOCK CERTIFICATE(S) OR BY
PERSON(S) AUTHORIZED TO SIGN ON BEHALF OF THE REGISTERED HOLDER(S) BY DOCUMENTS
TRANSMITTED HEREWITH. See General Instruction 7.
--------------------------------------------------------------------------------
X
--------------------------------------------------------------------------------
      Signature of Shareowner
X
--------------------------------------------------------------------------------
      Signature of Co-Shareowner
--------------------------------------------------------------------------------
      Daytime Telephone Number
--------------------------------------------------------------------------------

                           GUARANTEE OF SIGNATURE(S)
                       (See General Instructions 7 and 9)

FOR USE BY ELIGIBLE INSTITUTIONS ONLY. PLACE MEDALLION GUARANTEE IN SPACE BELOW.

Authorized signature(s)
--------------------------------------------------------------------------------

    Name -----------------------------------------------------------------------

                                                                         Name of
    Firm -----------------------------------------------------------------------

 Address -----------------------------------------------------------------------

         -----------------------------------------------------------------------
                                                              (Include Zip Code)

  Area Code and Telephone Number -----------------------------------------------
   Dated:
-------------------------------------------------------------, 2002

INSTRUCTIONS FOR COMPLETING BOXES 1 AND 2
BOX 1   Please complete to indicate the type of consideration that you wish to
        receive in exchange for your shares of Schuler common stock. All cash
        and all stock elections are subject to proration. For important
        information regarding this election, see General Instruction 4.
BOX 2   Sign and date this Election Form and Letter of Transmittal and return it
        in the enclosed envelope, together with the certificate(s) representing
        your Schuler shares (or Notice of Guaranteed Delivery).
                                        2
<PAGE>

BOX 3 SPECIAL ISSUANCE AND PAYMENT INSTRUCTIONS
------------------------------------------------------------------
Merger consideration (in the form of (i) checks for cash and/or (ii) shares of
D.R. Horton common stock) will be issued in the name(s) shown in Box 1 of this
Election Form and Letter of Transmittal unless otherwise instructed below. To
determine if Signature Guarantee in Box 2 is required, see General Instruction
9.

Issue to:

                                                                         Name(s)
                         -------------------------------------------------------
                 ---------------------------------------------------------------

                                                                         Address
                        --------------------------------------------------------

                                                                  City/State/Zip
                             ---------------------------------------------------

------------------------------------------------------------------
 BOX 4 SPECIAL DELIVERY INSTRUCTIONS
------------------------------------------------------------------

A check and/or certificate(s) for shares of D.R. Horton common stock will be
mailed to the person and address shown on in Box 1 of this Election Form and
Letter of Transmittal (or the person and address listed above) unless otherwise
instructed below. (See General Instruction 10.)

                                                                         Name(s)
                          ------------------------------------------------------

                 ---------------------------------------------------------------

                                                                         Address
                         -------------------------------------------------------

                                                                  City/State/Zip
                               -------------------------------------------------

------------------------------------------------------------------

<Table>
<Caption>

BOX 5 SUBSTITUTE FORM W-9
<S>                                  <C>

 PART I -- please provide your TIN   TIN: -------------------
 on the line at the right and        SOCIAL SECURITY NUMBER OR
 certify by signing and dating       EMPLOYER I.D.
 below.                              NUMBER
                                     ------------------------
 --------------------------------
 CERTIFICATION--Under the penalties  PART 2--[ ]
 of perjury, I certify that: (1) the TIN APPLIED FOR (OR INTENDED TO
 number shown on this Election Form  APPLY FOR IN NEAR FUTURE).
 and Letter of Transmittal is my     CHECK BOX IF APPLICABLE.
 correct Taxpayer Identification
 Number (or I am waiting for a       ------------------------
 number to be issued to me), (2) I
 am not subject to backup            PART 3--[ ]
 withholding because: (A) I am       EXEMPT PAYEE
 exempt from backup withholding, (B) ATTACH CERTIFICATE OF FOREIGN
 I have not been notified by the     STATUS (IF APPLICABLE).
 Internal Revenue Service ("IRS")
 that I am subject to backup
 withholding as a result of a
 failure to report all interest or
 dividends, or (C) after being so
 notified, the IRS has subsequently
 notified me that I am no longer
 subject to backup withholding (you
 must cross out item (2) above if
 you have been notified by the IRS
 that you are subject to backup
 withholding because of
 under-reporting interest or
 dividends on your tax return and
 you have not received another
 notice from the IRS indicating that
 you are no longer subject to backup
 withholding), and (3) I am a U.S.
 Person (including a U.S. resident
 alien).
Signature X --------------------     Department of Treasury,  Internal
                                     Revenue Service
Name --------------------------      Payer's Request for Taxpayer
                                      Identification Number (TIN)
Address ------------------------
City/State/Zip -------------------
Date: --------------------------
</Table>

BOX 6 CERTIFICATE OF AWAITING TAXPAYER IDENTIFICATION NUMBER
--------------------------------------------------------------------------------

I certify under penalties of perjury that a Taxpayer Identification Number has
not been issued to me, and either (1) I have mailed or delivered an application
to receive a Taxpayer Identification Number to the appropriate Internal Revenue
Service Center or Social Security Administration Office, or (2) I intend to mail
or deliver an application in the near future. I understand that if I do not
provide a Taxpayer Identification Number by the time of payment of cash pursuant
to the Merger, 30% of such cash payments that are made to me will be withheld.

Signature
------------------------------------------------------                      Date
------------------------
                 INSTRUCTIONS FOR COMPLETING BOXES 3 THROUGH 6
BOX 3   If you want to change the payee of the check or the ownership of shares
        of D.R. Horton common stock to be received, complete the Special
        Issuance and Payment Instructions section of this box. Signature(s) of a
        registered shareholder must be Medallion guaranteed. A notary public
        seal is not acceptable. (See General Instruction 9.)
BOX 4   Complete this section only if the consideration you are to receive is to
        be delivered to a person other than the registered holder or to a
        different address. (See General Instruction 10.)
BOX 5   You must complete this section with your correct Taxpayer Identification
        Number. For U.S. citizens, this is typically your U.S. Social Security
        Number. Failure to complete this Substitute Form W-9 may result in
        backup withholding of 30% of any cash payments made to you pursuant to
        the Merger. (See General Instruction 14.)
BOX 6   You must sign and date this certificate if you checked the box in Part 2
        of the Substitute Form W-9.

YOU ARE URGED TO READ THE INSTRUCTIONS ACCOMPANYING THIS ELECTION AND
TRANSMITTAL FORM. THE INSTRUCTIONS CONTAIN MORE COMPREHENSIVE GUIDELINES

                                        3
<PAGE>

WITH RESPECT TO ELECTION AND MERGER MECHANICS AND ADDITIONAL DETAILS REGARDING
THE SUBSTITUTE FORM W-9. FOR ADDITIONAL INFORMATION, YOU CAN ALSO CALL THOMAS
CONNELLY, THE CORPORATE SECRETARY OF SCHULER, AT (310) 648-7200.

     This Election Form and Letter of Transmittal is being delivered to you in
connection with the proposed Merger of Schuler into D.R. Horton, with D.R.
Horton as the surviving corporation (the "Merger"), pursuant to the Agreement
and Plan of Merger dated as of October 22, 2001, as amended, between Schuler and
D.R. Horton (the "Merger Agreement"). If the Merger is consummated, for each of
your shares of Schuler Class A common stock and Class B common stock
(collectively the "Schuler Shares") outstanding at the time of the Merger, you
will be entitled to receive, at your election, (i) the base Merger consideration
of a combination of $4.09 in cash and a fraction of a share of D.R. Horton
common stock, (ii) all cash, subject to proration, or (iii) all D.R. Horton
common stock, subject to proration. Beneficial owners may not make an election
for less than all of their Schuler Shares. See General Instruction 4.

     All registered holders of Schuler Shares must deliver to the Exchange Agent
a properly completed Election Form and Letter of Transmittal prior to the
Election Deadline (which is 5:00 p.m. New York City Time) on February 20, 2002.
All holders submitting an Election Form and Letter of Transmittal that is
received by the Exchange Agent after the Election Deadline will be deemed to
hold Non-Election Shares.

     THIS ELECTION FORM AND LETTER OF TRANSMITTAL IS NOT THE METHOD BY WHICH YOU
VOTE FOR OR AGAINST THE MERGER. YOUR VOTE IS VERY IMPORTANT. We urge you to vote
on the Merger and the Merger Agreement by completing, signing, dating and
returning the proxy card that accompanies the Joint Proxy Statement/Prospectus,
dated January   , 2002, relating to the Merger.

                     The Exchange Agent for the Merger is:

                    AMERICAN STOCK TRANSFER & TRUST COMPANY

<Table>
<S>                             <C>                             <C>
          By Mail:                  By Overnight Courier:                 By Hand:
       59 Maiden Lane                  59 Maiden Lane                  59 Maiden Lane
  New York, New York 10038        New York, New York 10038        New York, New York 10038
</Table>

     DELIVERY OF THE ELECTION FORM AND LETTER OF TRANSMITTAL TO AN ADDRESS OTHER
THAN AS SET FORTH ABOVE WILL NOT CONSTITUTE A VALID DELIVERY TO THE EXCHANGE
AGENT.

     TO BE EFFECTIVE, THE PROPERLY COMPLETED ELECTION FORM AND LETTER OF
TRANSMITTAL, TOGETHER WITH YOUR STOCK CERTIFICATES (OR A NOTICE OF GUARANTEED
DELIVERY OF SUCH STOCK CERTIFICATES AS SET FORTH IN GENERAL INSTRUCTION 12),
MUST BE RECEIVED BY THE EXCHANGE AGENT BEFORE THE ELECTION DEADLINE SPECIFIED
BELOW. SPECIAL RULES APPLY TO LOST OR DESTROYED CERTIFICATE(S).

                             TELEPHONE ASSISTANCE:
                           (800) 937-5449 (TOLL-FREE)

     RETURN THIS SIGNED ELECTION FORM AND LETTER OF TRANSMITTAL ALONG WITH YOUR
STOCK CERTIFICATE(S) IN THE ENCLOSED ENVELOPE TO: AMERICAN STOCK TRANSFER &
TRUST COMPANY, AT THE APPROPRIATE ADDRESS SET FORTH ABOVE PRIOR TO 5:00 PM (NEW
YORK CITY TIME) ON FEBRUARY 20, 2002.

     After the effective time of the Merger, until a record holder's
certificate(s) are received by the Exchange Agent at one of the addresses set
forth above, together with such documents as the Exchange

                                        4
<PAGE>

Agent may require, and processed for exchange by the Exchange Agent, such holder
will not receive the check or any certificate for shares of D.R. Horton common
stock in exchange for their certificate(s). If your certificate(s) are not
available at the time you send a completed Election Form and Letter of
Transmittal to the Exchange Agent, you may instead provide a Notice of
Guaranteed Delivery of your certificate(s) on the form enclosed herewith, and
you must, within three trading days after the date of execution of such
guarantee of delivery, deliver to the Exchange Agent the certificate(s)
representing the Schuler Shares in respect of which an election is being made.
Special rules apply to lost or destroyed certificates and are described below.

PLEASE READ THE GENERAL INSTRUCTIONS CAREFULLY BEFORE COMPLETING THE ELECTION
FORM AND LETTER OF TRANSMITTAL

                                        5
<PAGE>

                         REPRESENTATIONS AND WARRANTIES

     By completing and signing the foregoing Election Form and Letter of
Transmittal, you acknowledge, understand, represent and warrant the following:

     1.  The election is subject to (i) the terms, conditions and limitations
set forth in the Joint Proxy Statement/Prospectus, dated January   , 2002,
relating to the Merger (including all annexes thereto, and as it may be amended
or supplemented from time to time, the "Joint Proxy Statement/Prospectus"),
receipt of which is acknowledged by you, (ii) the terms of the Merger Agreement,
as the same may be amended or supplemented from time to time, a conformed copy
of which appears as Annex I to the Joint Proxy Statement/Prospectus, (iii)
completion of the attached Election Form and Letter of Transmittal, and (iv) the
accompanying instructions.

     You should read the Joint Proxy Statement/Prospectus because it contains
important information. The document is available, at no charge, by calling (800)
937-5449 (toll-free) or from the Securities and Exchange Commission's web site,
www.sec.gov.

     2. If you wish to sell Schuler Shares and you have already submitted the
Election Form and Letter of Transmittal with respect to those Schuler Shares,
you must revoke it and have the certificate(s) returned to you. If you purchase
Schuler Shares after having submitted an Election Form and Letter of
Transmittal, you must obtain and submit your newly acquired stock certificates,
and a new Election Form and Letter of Transmittal concerning the newly acquired
shares.

     3. By signing this Election Form and Letter of Transmittal, you represent
and certify that you (i) are surrendering to the American Stock Transfer & Trust
Company for exchange the share(s) represented by the certificate(s) accompanying
this Election Form and Letter of Transmittal (or the certificate(s) to be
delivered pursuant to the Notice of Guaranteed Delivery delivered herewith),
(ii) have complied with all requirements and make all acknowledgements,
representations and warranties stated in the instructions included in this
Election Form and Letter of Transmittal and the instructions accompanying this
Election Form and Letter of Transmittal, (iii) will be the registered holder(s)
of such shares of Schuler common stock on the effective date of the Merger, (iv)
have good title to such shares, (v) have full power and authority to transfer
and surrender these shares free and clear of all liens, restrictions, adverse
claims and encumbrances, (vi) make the election indicated in Box 1 above, and
(vii) have made only one election for yourself as a beneficial owner or, if
applicable, for each beneficial owner for whose account you are making the
election. By signing this Election Form and Letter of Transmittal, you
acknowledge that delivery of this Election Form and Letter of Transmittal and
any certificate(s) enclosed herewith is at your election and risk and that the
risk of loss with respect thereto will pass only when such materials are
actually received by the American Stock Transfer & Trust Company, the Exchange
Agent.

     In addition, you certify and warrant that you will, upon request, execute
and deliver any additional documents deemed appropriate or necessary by the
Exchange Agent or D.R. Horton in connection with the surrender of the
certificate(s). All authority conferred or agreed to be conferred in your
Election Form and Letter of Transmittal shall not be affected by, and shall
survive, your death or incapacity and any of your obligations shall be binding
upon your successors, assigns, heirs, executors, administrators and legal
representatives.

     4. You understand that an election is not made in acceptable form until
receipt by the Exchange Agent of the Election Form and Letter of Transmittal,
duly completed and signed, together with all accompanying evidence of authority
in form satisfactory to D.R. Horton (which may delegate power in whole or in
part to the Exchange Agent), and the certificate(s) relating thereto. All
questions as to validity, form and eligibility of any election or surrender of
the certificate(s) hereunder will be determined by D.R. Horton (which may
delegate power in whole or in part to the Exchange Agent), and any such
determination shall be final and binding.

     5. You are authorizing and instructing the Exchange Agent to deliver the
certificate(s) and to receive on your behalf, in exchange for the Schuler
Share(s) represented thereby, the Merger consideration elected by you (subject
to proration) issuable in the Merger pursuant to the Merger Agreement. You
                                        6
<PAGE>

understand that the Merger consideration paid in exchange for the surrendered
certificate(s) will be made as promptly as practicable if the Merger is
effected, and once surrender of the certificate(s) is made in acceptable form.
If the Merger is not consummated, you understand that the certificate(s) will be
returned to you.

     6. Unless otherwise indicated under Special Issuance and Payment
Instructions in Box 3, any certificate for shares of D.R. Horton common stock
and/or any check issuable in exchange for the certificate(s) submitted hereby
will be issued in the name of the registered holder(s) of such Schuler Shares.
Similarly, unless otherwise indicated under Special Delivery Instructions in Box
4, any certificate for shares of D.R. Horton common stock and/or any check for
cash issuable in exchange for the certificate(s) submitted hereby will be mailed
to the registered holder(s) of the Schuler Shares at the address or addresses
shown above.

                                        7
<PAGE>

                              GENERAL INSTRUCTIONS

     1.  Election Date. To be effective, an election pursuant to the terms and
conditions set forth on the Election Form and Letter of Transmittal, accompanied
by the certificate(s) described above representing Schuler Shares, must be
received by the Exchange Agent, at the address for the Exchange Agent set forth
above, no later than 5:00 p.m. (New York City Time) on February 20, 2002 (the
"Election Date" or "Election Deadline"). Holders of Schuler Shares whose
certificate(s) are not immediately available may also make an effective election
by properly completing and executing the Election Form and Letter of Transmittal
and the Notice of Guaranteed Delivery, which is enclosed herewith, and
submitting to the Exchange Agent prior to the Election Deadline the Election
Form and Letter of Transmittal and the Notice of Guaranteed Delivery (subject to
the condition that the certificate(s) for which delivery is thereby guaranteed
are in fact delivered to the Exchange Agent, duly endorsed in blank or otherwise
in form acceptable for transfer on the books of Schuler, no later than 5:00 p.m.
(New York City time) on the third trading day after the date of execution of
such Notice of Guaranteed Delivery). Each outstanding Schuler Share at the
effective time of the Merger with respect to which the Exchange Agent shall have
not received an effective Election Form and Letter of Transmittal and the
certificate(s) surrendered according thereto by the Election Date or as provided
in the Notice of Guaranteed Delivery, will be converted into the right to
receive the base Merger consideration. After the effective time of the Merger,
separate transmittal documents will be sent to holders of Schuler Shares who
either did not return the Election Form and Letter of Transmittal prior to the
Election Date, or who returned an Election Form which was not properly
completed.

     2.  Revocation of Election. Any election on the Election Form and Letter of
Transmittal may be revoked by the person who submitted this Election Form and
Letter of Transmittal to the Exchange Agent by written notice duly executed,
which must be received by the Exchange Agent prior to the Election Date. Such
revocation notice must specify the person in whose name the Schuler Shares to
which the notice applies had been deposited, the number of Schuler Shares to
which the notice applies, the name of the registered holder thereof, and the
serial numbers shown on the certificate(s) representing the Schuler Shares to
which the notice applies. The signature of the registered holder of the Schuler
Shares must be Medallion guaranteed on the notice in compliance with General
Instruction 9 below. If an election is revoked, the certificate(s) submitted
therewith will be treated as Non-Election Shares unless a later valid election
is made.

     3.  Termination of Right to Elect. If for any reason the Merger is not
consummated or is abandoned, all Election Forms will be void and of no effect.
Certificate(s) for Schuler Shares previously received by the Exchange Agent will
be returned promptly by the Exchange Agent to the person who submitted such
certificate(s).

     4.  Election and Proration Procedures. You may elect to receive per share
of Schuler common stock:

        - the base Merger consideration of $4.09 in cash and a fraction of a
          share of D.R. Horton common stock (determined as set forth in the
          table below);

        - cash equal to the amount of the base Merger consideration (determined
          as set forth in the table below), subject to proration; or

        - shares of D.R. Horton common stock with a value equal to the base
          Merger consideration, based on the average closing price of D.R.
          Horton common stock used to calculate the base Merger consideration,
          subject to proration.

     If you choose to receive all cash or all D.R. Horton common stock, your
election will be subject to proration. In addition, your election is otherwise
subject to adjustment under the circumstances described below. To determine the
fractional share of D.R. Horton common stock you will receive if you elect to
receive D.R. Horton common stock, D.R. Horton's common stock will be valued
based on its average closing price as reported for New York Stock Exchange
Composite Transactions for the fifteen consecutive

                                        8
<PAGE>

trading days ending on, and including, the date that is three trading days prior
to February 21, 2002, the date of the Schuler special stockholder meeting, as
follows:

<Table>
<Caption>
                                                            TOTAL AMOUNT OF BASE MERGER
                                                            CONSIDERATION FOR EACH SHARE
                                                              OF SCHULER COMMON STOCK
                                                                   CONSISTING OF
      AVERAGE CLOSING                                       $4.09 IN CASH AND SHARES OF
         PRICE OF                                                   D.R. HORTON
        D.R. HORTON            D.R. HORTON COMMON STOCK     COMMON STOCK AT THE AVERAGE
       COMMON STOCK          ISSUED FOR EACH SCHULER SHARE         CLOSING PRICE
---------------------------  -----------------------------  ----------------------------
<C>                          <S>                            <C>
     $27.51 or higher        0.487 shares                        $17.49 or higher
     $23.51 to $27.50        Fraction of a share equal to             $17.49
                             the quotient obtained by
                             dividing $13.395 by the
                             average closing price of D.R.
                             Horton common stock
     $19.50 to $23.50        0.570 shares                        $15.21 to $17.49
     $17.51 to $19.49        Fraction of a share equal to             $15.21
                             the quotient obtained by
                             dividing $11.115 by the
                             average closing price of D.R.
                             Horton common stock
     $16.00 to $17.50        0.635 shares                        $14.25 to $15.20
</Table>

     If the average closing price of D.R. Horton common stock determined as set
forth above is less than $16.00, the total amount of the base Merger
consideration would be less than $14.25. However, in that event, Schuler can
terminate the Merger Agreement, unless D.R. Horton makes an election to increase
the cash portion of the Merger consideration or the stock portion of the Merger
consideration, or both, so that the amount of the base Merger consideration of
cash and D.R. Horton common stock for each share of Schuler common stock equals
at least $14.25. In addition, as more fully described in the Joint Proxy
Statement/Prospectus, no more than 50% of the aggregate Merger consideration
will be paid in cash.

     A description of the election and proration procedures is set forth in the
Joint Proxy Statement/ Prospectus under the headings "The Merger -- Merger
Consideration." A full statement of the election and proration procedures is
contained in the Merger Agreement, and all elections are subject to compliance
with such procedures. IN CONNECTION WITH MAKING ANY ELECTION, A HOLDER OF
SCHULER SHARES SHOULD READ CAREFULLY, AMONG OTHER MATTERS, THE DESCRIPTIONS
REFERENCED ABOVE AND THE STATEMENT AND THE INFORMATION CONTAINED IN THE JOINT
PROXY STATEMENT/PROSPECTUS UNDER THE HEADINGS "RISK FACTORS" AND "UNITED STATES
FEDERAL INCOME TAX CONSEQUENCES OF THE MERGER."

     Although you may elect to receive Merger consideration consisting of all
D.R. Horton common stock or all cash, if you elect all stock or all cash, you
may instead receive a prorated combination of D.R. Horton common stock and cash,
because the aggregate amount of D.R. Horton common stock and cash that Schuler
stockholders can receive in the Merger will be fixed. Consequently, for excess
cash to be available to pay Schuler stockholders who elect all cash, some of the
other Schuler stockholders must elect to receive all stock. In addition, to the
extent some Schuler stockholders elect to receive all stock, thus making excess
cash available, that cash is subject to reduction if there are dissenting
stockholders. For Schuler stockholders that have elected to receive all stock,
excess shares of D.R. Horton common stock will only be available to the extent
that other Schuler stockholders have elected to receive all cash. Finally, to
retain reorganization treatment of the Merger for federal tax purposes, the
Merger Agreement provides that, if more than 50% of the total value of the
Merger consideration would be cash, the cash portion of the Merger consideration
would be decreased so that at least 50% of the total value of the Merger
consideration would be in stock. For more information, please refer to the
section in the Joint Proxy Statement/Prospectus entitled "The Merger
Agreement -- Merger Consideration."

                                        9
<PAGE>

     D.R. Horton and the Exchange Agent, with D.R. Horton's consent, reserve the
right to deem that you have elected to receive Non-Election Shares if:

     A.  No election choice is indicated in Box 1 above;

     B.  Incorrect election choices are indicated in Box 1 above;

     C.  You fail to follow the instructions on the Election Form and Letter of
Transmittal (including failure to submit your certificate(s) or a Notice of
Guaranteed Delivery) or otherwise fail to properly make an election;

     D.  A complete Election Form and Letter of Transmittal (including
submission of your certificate(s) or a Notice of Guaranteed Delivery) is not
actually received by the Exchange Agent prior to the Election Date; or

     E.  You return the Election Form and Letter of Transmittal with a Notice of
Guaranteed Delivery but do not deliver the certificate(s) representing the
Schuler Shares in respect of which the election is being made within three
trading days after the date of execution of such guarantee of delivery.

Notwithstanding anything to the contrary in the Election Form and Letter of
Transmittal or the General Instructions, the Exchange Agent, with D.R. Horton's
consent, reserves the right to waive any flaws in a completed Election Form and
Letter of Transmittal but shall be under no obligation to do so. The Merger
consideration is expected to be mailed as soon as practicable following such
determination regarding completed Election Forms and Letters of Transmittal or,
if later, as soon as practicable after the Merger is consummated. If the
Election Form and Letter of Transmittal is determined to be flawed, your share
certificates will be returned, and you will be sent a separate letter of
transmittal after the Merger is consummated.

If you have elected appraisal rights for your Schuler Shares pursuant to Section
262 of the Delaware General Corporation Law, but you fail to perfect or
otherwise lose your right to appraisal, you will receive the base Merger
consideration for your Schuler Shares notwithstanding the fact that you have
properly filed an Election Form and Letter of Transmittal electing to receive
all cash or all stock.

     5.  D.R. Horton Certificates; Fractional Shares. All shares of D.R. Horton
common stock issued in the Merger will be in the form of certificates. Holders
or their designees set forth in Box 3 will receive, at the applicable address,
certificates with respect to such shares of D.R. Horton common stock
representing the applicable stock portion of the Merger consideration. No
fractional shares of D.R. Horton common stock will be issued in connection with
the Merger. Each holder of Schuler Shares who would otherwise have been entitled
to receive a fraction of a share of D.R. Horton common stock (after taking into
account all shares of D.R. Horton common stock to be received by such holder)
will receive, in lieu thereof, cash (without interest) in an amount equal to
such fractional part of a share of D.R. Horton common stock multiplied by the
per share closing price of D.R. Horton common stock as reported for the New York
Stock Exchange Composite Transactions on the date of the consummation of the
Merger.

     6.  Inadequate Space. If there is insufficient space on this Election Form
and Letter of Transmittal to list all your certificate(s) being submitted to the
Exchange Agent, please attach a separate list.

     7.  Signatures. The signature (or signatures, in the case of the
certificate(s) owned by two or more joint holders) on the Election Form and
Letter of Transmittal should correspond exactly with the name(s) as written on
the face of the certificate(s) submitted, unless the Schuler Shares described in
the Election Form and Letter of Transmittal have been assigned by the registered
holder(s), in which event this Election Form and Letter of Transmittal should be
signed in exactly the same form as the name of the last transferee indicated on
the transfers attached to or endorsed on the certificate(s). If the Election
Form and Letter of Transmittal is signed by a person or persons other than the
registered owner(s) of the certificate(s) listed, the certificate(s) must be
endorsed or accompanied by appropriate stock power(s), in either case signed
exactly as the name(s) of the registered owner(s) appear on the certificate(s)
with signatures guaranteed by Medallion signature guarantees in compliance with
General Instruction 9 below. If the Election Form and Letter of Transmittal or
any certificate(s) or stock power(s) are signed by a
                                        10
<PAGE>

trustee, executor, administrator, guardian, officer of a corporation,
attorney-in-fact or any other person acting in a representative or fiduciary
capacity, the person signing must give such person's full title in such capacity
and appropriate evidence of authority to act in such capacity must be forwarded
with the Election Form and Letter of Transmittal.

     8.  New Certificates and Checks in Same Name. If all certificate(s)
representing shares of D.R. Horton common stock and all check(s) in respect of
Schuler Shares are to be registered in, or payable to the order of, exactly the
same name(s) that appears on the certificate(s) representing Schuler Shares
submitted with this Election Form and Letter of Transmittal, no endorsement of
the certificate(s) or separate stock power(s) are required. Do not sign the
certificate(s).

     9.  New Certificate and Checks in Different Name; Guarantee of Signature.
If any certificate(s) representing shares of D.R. Horton common stock or any
check(s) in respect of Schuler Shares are to be registered in, or payable to the
order of, any name other than the exact name that appears on the certificate(s)
representing the Schuler Shares submitted with the Election Form and Letter of
Transmittal, such registration and/or payment shall not be made by the Exchange
Agent unless the certificate(s) submitted are endorsed, Box 3 is completed, and
the signature of the person(s) whose name(s) appear on the certificate(s) is
guaranteed in Box 2 by a financial institution (including most commercial banks,
savings associations and brokerage houses) that is a participant in good
standing of the Security Transfer Agent's Medallion Program, the New York Stock
Exchange Medallion Program or the Stock Exchange Medallion Program.

     10.  Special Delivery Instructions. If the checks are to be payable to the
order of, or the certificates for shares of D.R. Horton common stock are to be
registered in, the name of the registered holder(s) of Schuler Shares, but are
to be sent to someone other than the registered holder(s) or to an address other
than the address of the registered holders, it will be necessary to indicate
such person or address in Box 4.

     11.  Lost, Stolen or Destroyed Certificates. If you have lost your
certificate representing shares of Schuler common stock, or if your certificate
has been stolen or destroyed, you should notify Schuler's transfer agent, Mellon
Investor Services, at (800) 356-2017. In order for you to make an election with
respect to shares for which the certificate has been lost, stolen or destroyed,
Mellon Investor Services must first issue a replacement share certificate. Prior
to issuing a replacement certificate Mellon Investor Services may require you to
deliver a suitable bond or indemnity.

     12.  Guarantee of Delivery. Holders whose certificates for Schuler Shares
are not immediately available or who cannot deliver their certificates for
Schuler Shares to the Exchange Agent on or prior to the Election Date, may make
an effective election for their Schuler Shares by properly completing and duly
executing a Notice of Guaranteed Delivery. Pursuant to this procedure, (i) the
election must be made by or through an eligible institution, (ii) a properly
completed and duly executed Notice of Guaranteed Delivery, substantially in the
form enclosed herewith, must be received by the Exchange Agent on or prior to
the Election Date, and (iii) the certificates evidencing all surrendered Schuler
Shares, as the case may be, together with a properly completed and duly executed
Election Form and Letter of Transmittal (or a manually signed facsimile
thereof), together with any required signature guarantees, and any other
documents required by this Election Form and Letter of Transmittal, must be
received by the Exchange Agent within three trading days after the date of
execution of such Notice of Guaranteed Delivery.

     13.  Miscellaneous. A single check and/or a single stock certificate
representing shares of D.R. Horton common stock will be issued. All questions
with respect to the Election Form and Letter of Transmittal and the elections
(including, without limitation, questions relating to the timeliness or
effectiveness of revocation of any election and computation as to proration)
will be determined by D.R. Horton (which may delegate power in whole or in part
to the Exchange Agent), which determination shall be conclusive and binding.

     14.  30% Backup Withholding. A holder who receives a cash payment pursuant
to the Merger is required to provide the Exchange Agent (as payer) with such
holder's correct taxpayer identification

                                        11
<PAGE>

number ("TIN") on the Substitute Form W-9 enclosed herein. If the holder is an
individual, the TIN is his or her U.S. Social Security Number. If the Exchange
Agent is not provided with the correct TIN, cash payments that are made by the
Exchange Agent to such holder or other payee pursuant to the Merger may be
subject to backup withholding at a rate of 30%, and such holder or payee may be
subject to a $50 penalty imposed by the Internal Revenue Service. Backup
withholding is not an additional tax. Rather, the taxes owed by persons subject
to backup withholding will be reduced by the amount of tax withheld, provided
that the required information is given to the Internal Revenue Service. If
withholding results in an overpayment of taxes, a refund may be obtained from
the Internal Revenue Service.

     Certain holders are not subject to these backup withholding and reporting
requirements. To avoid possible erroneous backup withholding, a holder who is
exempt from backup withholding should complete the Substitute Form W-9 by
providing the holder's correct TIN, signing and dating such form, and checking
the box in Part 3 of the Substitute Form W-9. A shareholder who is a foreign
individual or foreign entity must also submit to the Exchange Agent a properly
completed IRS Form W-8, Certificate of Foreign Status, signed under penalty of
perjury, attesting to such holder's exempt status. A copy of IRS Form W-8 may be
obtained from the Exchange Agent. Foreign investors should consult their tax
advisors regarding the need to complete IRS Form W-8 and any other forms that
may be required. See the enclosed "Guidelines for Certification of Taxpayer
Identification Number on Substitute Form W-9" for more instructions.

     The box in Part 2 of the Substitute Form W-9 should be checked if the
submitting holder has not been issued a TIN and has applied for a TIN or intends
to apply for a TIN in the near future. If the box in Part 2 of the Substitute
Form W-9 is checked, the holder or other payee must also complete the
Certificate of Awaiting Taxpayer Identification Number provided herein.
Notwithstanding that the box in Part 2 of the Substitute Form W-9 is checked and
the Certificate of Awaiting Taxpayer Identification Number is completed, the
Exchange Agent will withhold 30% on all cash payments made prior to the time a
TIN is provided to the Exchange Agent.

     The holder is required to give the Exchange Agent the TIN (e.g., U.S.
Social Security Number or Employer Identification Number) of the record owner of
the Schuler Shares or of the last transferee appearing on the transfers attached
to, or endorsed on, the Schuler Shares. If the Schuler Shares are in more than
one name or are not in the name of the actual owner, consult the enclosed
"Guidelines for Certification of Taxpayer Identification Number on Substitute
Form W-9" for additional guidance on which number to report.

     15.  Withholding Applicable to Foreign Shareholders. Even if a foreign
shareholder has provided the required Form W-8 and Form W-9 to avoid backup
withholding as described above, the payment made to the foreign shareholder
pursuant to the Merger may be subject to withholding under general withholding
requirements applicable to foreign persons. Foreign shareholders are urged to
consult their tax advisors regarding the application of federal income tax
withholding, including eligibility for a withholding tax reduction or exemption
and refund procedures.

                                        12
<PAGE>

            GUIDELINES FOR CERTIFICATION OF TAXPAYER IDENTIFICATION
                         NUMBER ON SUBSTITUTE FORM W-9

     Guidelines for Determining the Proper Identification Number to Give the
Payer. U.S. Social Security Numbers have nine digits separated by two hyphens:
i.e., 000-00-0000. Employer Identification Numbers have nine digits separated by
only one hyphen: i.e., 00-0000000. The table below will help determine the
number to give the payer.

<Table>
<Caption>
------------------------------------------------------------------------------------------------------
FOR THIS TYPE OF ACCOUNT:                           GIVE THE U.S. SOCIAL SECURITY NUMBER OF:
------------------------------------------------------------------------------------------------------
<S>                                                 <C>
 1. An individual's account.                        The individual.
 2. Two or more individuals (joint account).        The actual owner of the account or, if combined
                                                    funds, any one of the individuals(1).
 3. Husband and wife (joint account).               The actual owner of the account or, if joint
                                                    funds, either person(1).
 4. Custodian account of a minor (Uniform Gift to   The minor(2).
    Minors Act).
 5. Adult and minor (joint account).                The adult or, if the minor is the only
                                                    contributor, the minor(l).
 6. Account in the name of guardian or committee    The ward, minor, or incompetent person(3).
    for a designated ward, minor, or incompetent
    person.
 7a. The usual revocable savings trust account      The grantor-trustee(l).
     (grantor is also trustee).
 7b. So-called trust account that is not a legal    The actual owner(l).
     or valid trust under State law.
 8. Sole proprietor account.                        The owner(4).
</Table>

<Table>
<Caption>
------------------------------------------------------------------------------------------------------
FOR THIS TYPE OF ACCOUNT:                           GIVE THE U.S. SOCIAL SECURITY NUMBER OF:
------------------------------------------------------------------------------------------------------
<S>                                                 <C>
 9. A valid trust, estate, or pension trust.        The legal entity (do not furnish the identifying
                                                    number of the personal representative or trustee
                                                    unless the legal entity itself is not designated
                                                    in the account title)(5).
 10. Corporate account.                             The corporation.
 11. Religious, charitable or educational           The organization.
 organization account.
 12. Partnership accounting held in the name of     The partnership.
 the business.
 13. Association, club or other tax-exempt          The organization.
 organization.
 14. A broker or registered nominee.                The broker or nominee.
 15. Account with the Department of Agriculture in  The public entity.
 the name of a public entity (such as a State or
 local government, school district, or prison)
 that receives agricultural program payments.
</Table>

---------------
(1)   List first and circle the name of the person whose number you furnish.
(2)   Circle the minor's name and furnish the minor's U.S. Social Security
      Number.
(3)   Circle the ward's, minor's or incompetent person's name and furnish such
      person's U.S. Social Security Number.
(4)   You must show your individual name, but you may also enter your business
      or "doing business as" name. You may use either your U.S. Social Security
      Number or Employer Identification Number (if you have one).
(5)   List first and circle the name of the legal trust, estate, or pension
      trust.

Note: If no name is circled when there is more than one name listed, the number
      will be considered to be that of the first name listed.

                                        13
<PAGE>

            GUIDELINES FOR CERTIFICATION OF TAXPAYER IDENTIFICATION
                         NUMBER ON SUBSTITUTE FORM W-9
             (SECTION REFERENCES ARE TO THE INTERNAL REVENUE CODE)

<Table>
<Caption>
------------------------------------------------------------
<S>                                                          <C>
 OBTAINING A NUMBER:
 If you don't have a TIN or you don't know your number,
 obtain a Form SS-5, Application for a Social Security Card,
 or a Form SS-4, Application for Employer Identification
 Number, at the local office of the Social Security
 Administration and the Internal Revenue Service (IRS),
 respectively and apply for a number.
 PAYEES EXEMPT FROM BACKUP WITHHOLDING:
 Payees specifically exempted from backup withholding on ALL
 payments include the following:
   - An organization exempt from tax under section 501(a),
 or an individual retirement plan;
   - The United States or any agency or instrumentality
 thereof;
   - A State, the District of Columbia, a possession of the
     United States, or any subdivision or instrumentality
     thereof;
   - A foreign government, a political subdivision of a
     foreign government, or any agency or instrumentality
     thereof;
   - An international organization or any agency or
 instrumentality thereof;
 Other payees that may be exempt from backup withholding
 include:
   - A corporation;
   - A financial institution;
   - A registered dealer in securities or commodities
     required to register in the United States, the District
     of Columbia, or a possession of the U.S.;
   - A real estate investment trust;
   - A common trust fund operated by a bank under section
 584(a);
   - An entity registered at all times during the tax year
     under the Investment Company Act of 1940, as amended;
   - An exempt charitable remainder trust described in
     section 664, or a non-exempt trust described in section
     4947(a)(l);
   - A foreign central bank of issue;
   - A nominee or custodian; and
   - A registered futures commission merchant.
 PAYMENTS OF DIVIDENDS AND PATRONAGE DIVIDENDS NOT GENERALLY
 SUBJECT TO BACKUP WITHHOLDING INCLUDE THE FOLLOWING:
   - Payments to nonresident aliens subject to withholding
 under section 1441;
   - Payments to partnerships not engaged in a trade or
     business in the U.S. and which have at least one
     nonresident partner;
   - Payments of patronage dividends where the amount
 received is not paid in money; and
   - Payments made by certain foreign organizations.
 PAYMENTS OF INTEREST NOT GENERALLY SUBJECT TO BACKUP
 WITHHOLDING INCLUDE THE FOLLOWING:
   - Payments of interest on obligations issued by
     individuals. Note: You may be subject to backup
     withholding if this interest is $600 or more and is
     paid in the course of the payer's trade or business and
     you have not provided your correct Taxpayer
     Identification Number to the payer;
   - Payments of tax-exempt interest (including exempt
 interest dividends under section 852);
   - Payments described in section 6049(b)(5) to
 non-resident aliens;
   - Payments on tax-free covenant bonds under section 1451;
 and
   - Payments made by certain foreign organizations.

 Exempt payees described above must still complete the
 Substitute Form W-9 to avoid possible erroneous backup
 withholding. FILE THE FORM ENCLOSED HEREWITH WITH THE
 PAYER, FURNISH YOUR TAXPAYER IDENTIFICATION NUMBER, CHECK
 THE BOX IN PART 3 OF THE SUBSTITUTE FORM W-9, AND SIGN AND
 DATE THE FORM. Certain payments, other than interest,
 dividends and patronage dividends, that are not subject to
 information reporting are also not subject to backup
 withholding. For details, see the regulations under
 sections 6041, 6041A(a), 6045, and 6050A and the
 regulations issued throughout.
</Table>

                                        14
<PAGE>

<Table>
<Caption>
------------------------------------------------------------
<S>                                                          <C>
PRIVACY ACT NOTICE:
 Section 6109 requires most recipients of dividend,
 interest, or other payments to give taxpayer identification
 numbers to payers who must file information returns with
 the IRS to report those payments. The IRS uses the numbers
 for identification purposes. Payers must be given the
 numbers whether or not recipients are required to file tax
 returns. Payers must generally withhold 30% of taxable
 interest, dividends, and certain other payments to a payee
 who does not furnish a Taxpayer Identification Number to a
 payer. Certain penalties may also apply.
 PENALTIES:
 (1) PENALTY FOR FAILURE TO FURNISH TAXPAYER IDENTIFICATION
     NUMBER--If you fail to furnish your correct Taxpayer
     Identification Number to a payer, you are subject to a
     penalty of $50 for each such failure which is due to
     reasonable cause and not to willful neglect.

 (2) CIVIL PENALTY FOR FALSE INFORMATION WITH RESPECT TO
     WITHHOLDING--If you make a false statement with no
     reasonable basis which results in no imposition of
     backup withholding, you are subject to a penalty of
     $500.

 (3) CRIMINAL PENALTY FOR FALSIFYING INFORMATION--Willfully
     falsifying certification or affirmations may subject
     you to criminal penalties including fines and/or
     imprisonment.
 FOR ADDITIONAL INFORMATION CONTACT YOUR TAX CONSULTANT OR
 THE INTERNAL REVENUE SERVICE.
</Table>

                 ---------------------------------------------

                                        15

