<SUBMISSION>
<ACCESSION-NUMBER>0000950153-02-001118
<TYPE>8-K
<PUBLIC-DOCUMENT-COUNT>3
<PERIOD>20020614
<ITEMS>5
<ITEMS>7
<FILING-DATE>20020617
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>MERITAGE CORP
<CIK>0000833079
<ASSIGNED-SIC>1531
<IRS-NUMBER>860611231
<STATE-OF-INCORPORATION>MD
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>8-K
<ACT>34
<FILE-NUMBER>001-09977
<FILM-NUMBER>02680070
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>6613 N SCOTTSDALE RD
<STREET2>STE 200
<CITY>SCOTTSDALE
<STATE>AZ
<ZIP>85250
<PHONE>6029988700
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>6613 NORTH SCOTTSDALE ROAD
<STREET2>SUITE200
<CITY>SCOTTSDALE
<STATE>AZ
<ZIP>85250
</MAIL-ADDRESS>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>MONTEREY HOMES CORP
<DATE-CHANGED>19970113
</FORMER-COMPANY>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>EMERALD MORTGAGE INVESTMENTS CORP
<DATE-CHANGED>19900502
</FORMER-COMPANY>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>HOMEPLEX MORTGAGE INVESTMENTS CORP
<DATE-CHANGED>19920703
</FORMER-COMPANY>
</FILER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>p66717e8vk.htm
<DESCRIPTION>8-K
<TEXT>
<HTML>
<HEAD>
<TITLE>e8vk</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="center"><FONT size="2"><B>SECURITIES AND EXCHANGE COMMISSION<BR>
WASHINGTON, D.C. 20549</B>
</FONT>

<P align="center"><FONT size="2"><B>FORM 8-K</B>
</FONT>

<P align="center"><FONT size="2"><B>CURRENT REPORT</B>
</FONT>

<DIV align="center"><FONT size="2"><B>PURSUANT TO SECTION 13 OR 15(d) OF THE<BR>
SECURITIES EXCHANGE ACT OF 1934</B>
</FONT></DIV>

<P align="center"><FONT size="2"><B>Date of report (Date of earliest event reported): June&nbsp;14, 2002</B>
</FONT>

<P align="center"><FONT size="4"><B>MERITAGE CORPORATION</B>
</FONT>

<DIV align="center"><FONT size="2"><B>(Exact Name of Registrant as Specified in Charter)</B>
</FONT></DIV>

<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="100%">
<TR valign="bottom">
        <TD width="36%">&nbsp;</TD>
        <TD width="5%">&nbsp;</TD>
        <TD width="27%">&nbsp;</TD>
        <TD width="5%">&nbsp;</TD>
        <TD width="27%">&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align="center" valign="top"><FONT size="2"><B>Maryland</B></FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="center" valign="top"><FONT size="2">
<B>I-9977</B>
</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="center" valign="top"><FONT size="2"><B>86-0611231</B></FONT></TD>
</TR>
<TR>
        <TD align="center" valign="top"><HR size="1" noshade></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="center" valign="top"><FONT size="2">
<HR size="1" noshade>
</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="center" valign="top"><HR size="1" noshade></TD>
</TR>
<TR valign="bottom">
        <TD align="center" valign="top"><FONT size="2"><B>(State or Other Jurisdiction of<BR>
Incorporation)</B></FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="center" valign="top"><FONT size="2">
<B>(Commission<BR>
File Number)</B>
</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="center" valign="top"><FONT size="2"><B>(IRS Employer<BR>
Identification No.)</B></FONT></TD>
</TR>
</TABLE>
</CENTER>
<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="75%">
<TR valign="bottom">
        <TD width="87%">&nbsp;</TD>
        <TD width="5%">&nbsp;</TD>
        <TD width="8%">&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align="center" valign="top"><FONT size="2"><B>6613 NORTH SCOTTSDALE ROAD, &nbsp;&nbsp;SUITE 200,&nbsp;&nbsp; SCOTTSDALE, ARIZONA</B></FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="center" valign="top"><FONT size="2">
<B>85250</B></FONT></TD>
</TR>
<TR>
        <TD colspan="3" valign="top" align="left"><HR size="1" noshade></TD>
</TR>
<TR valign="bottom">
        <TD align="center" valign="top"><FONT size="2"><B>(Address of Principal Executive Offices)</B></FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="center" valign="top" nowrap><FONT size="2"><B>(Zip Code)</B></FONT></TD>
</TR>
</TABLE>
</CENTER>
<P align="center"><FONT size="2"><B>(877)&nbsp;400-7888</B>
</FONT>

<DIV align="center"><FONT size="2"><HR size="1" width="40%" noshade>
<B>(Registrant&#146;s telephone number, including area code)</B>
</FONT></DIV>

<P align="center"><FONT size="2"><B>Not applicable</B>
</FONT>

<DIV align="center"><FONT size="2"><HR size="1" width="45%" noshade>
<B>(Former Name or Former Address, if Changed Since Last Report)</B>
</FONT></DIV>

<P align="center"><FONT size="2">&nbsp;</FONT>

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<!-- TOC -->
<A name="toc"><DIV align="CENTER" style="page-break-before:always"><U><B>TABLE OF CONTENTS</B></U></DIV></A>

<P><CENTER>
<TABLE border="0" width="90%" cellpadding="0" cellspacing="0">
<TR>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
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	<TD width="76%"></TD>
</TR>
<TR><TD></TD><TD colspan="8"><A HREF="#000">ITEM 5. &nbsp;&nbsp;OTHER EVENTS.</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#001">ITEM 7. &nbsp;&nbsp;FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS.</A></TD></TR>
<TR><TD colspan="9"><A HREF="#002">SIGNATURES</A></TD></TR>
<TR><TD colspan="9"><A HREF="#003">EXHIBIT INDEX</A></TD></TR>
<TR><TD colspan="9"><A HREF="p66717exv23w1.txt">EX-23.1</A></TD></TR>
<TR><TD colspan="9"><A HREF="p66717exv99w1.txt">EX-99.1</A></TD></TR>
</TABLE>
</CENTER>
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<!-- link2 "ITEM 5. &nbsp;&nbsp;OTHER EVENTS." -->
<DIV align="left"><A NAME="000"></A></DIV>
<P align="left"><FONT size="2"><B>ITEM 5. &nbsp;&nbsp;OTHER EVENTS.</B>
</FONT>

<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;References to &#147;we,&#148; &#147;our&#148; and &#147;us&#148; in this current report on Form 8-K
refer to Meritage Corporation and its consolidated subsidiaries.
</FONT>
<P align="left"><FONT size="2"><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Agreement
to Acquire the Homebuilding Assets of Hammonds Homes</B>
</FONT>

<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On June&nbsp;12, 2002, we entered into a definitive agreement to acquire
substantially all of the homebuilding assets of Hammonds Homes, a privately
held builder of homes in Texas, subject to customary closing conditions. The
estimated purchase price will be approximately $82.8&nbsp;million, comprised of cash
payable at closing of $45.8&nbsp;million and the repayment of existing debt in the
amount of $37.0&nbsp;million.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In 2000, Hammonds closed 737 homes at an average selling price of
approximately $186,000, resulting in total revenue of $136.8&nbsp;million and EBITDA
of $15.2&nbsp;million. In 2001, Hammonds closed 935 homes at an average selling
price of approximately $194,000, resulting in total revenue of $181.1&nbsp;million
and EBITDA of $23.6&nbsp;million. The purchase price of $82.8&nbsp;million was based on
projected revenue and EBITDA in 2002 of $175.0 to $185.0&nbsp;million and $18.0 to
$19.0&nbsp;million, respectively, before taking into account any potential
synergies. Home closings were 183 for the quarter ended March&nbsp;31, 2002,
compared to 201 for the quarter ended March&nbsp;31, 2001. The decrease in home
closings in the first quarter of 2002 compared to the first quarter of 2001
mainly reflects a slower overall demand for homes in the Austin, Texas market.
For the quarter ended March&nbsp;31, 2002, Hammonds had revenue and EBITDA of $38.2
million and $3.9&nbsp;million, respectively, compared to revenue and EBITDA of $37.1
million and $4.4&nbsp;million, respectively, for the quarter ended March&nbsp;31, 2001.
New sales contracts were 268 for the quarter ended March&nbsp;31, 2002, compared to
253 for the quarter ended March&nbsp;31, 2001. We expect that the acquisition of
Hammonds Homes will enable us to significantly expand our presence in the
Houston and Austin markets and strengthen our Dallas operations. We believe
the acquisition will be accretive to our 2002 net earnings.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A copy
of our press release announcing the proposed Hammonds acquisition
as well as selected results for the first two months of our second quarter, including
information concerning forward-looking statements and factors that may affect our future
results, is attached hereto as Exhibit&nbsp;99.1.
</FONT>
<P><FONT size="2"><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Filing
of Certain Materials</B>
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
May&nbsp;1, 2002, we filed with the
Securities and Exchange Commission a shelf registration statement on Form&nbsp;S-3
(Registration No.&nbsp;333-87398) which became effective on May&nbsp;14, 2002. On June
14, 2002, we filed with the Securities and Exchange Commission a
Prospectus Supplement to the Registration Statement pursuant to Rule&nbsp;424 under
the Securities Act of 1933, as amended. We are filing at Exhibit
23.1 to this Form&nbsp;8-K the consent of McGladrey &#038; Pullen LLP to the use of their
name and the incorporation by reference in the Registration Statement and the
Prospectus Supplement of their report dated March&nbsp;29, 2001 on the combined
balance sheet of Hancock Communities Limited Liability Company and HC Builders,
Inc. (subsidiaries of American West Homes, Inc.) as of December&nbsp;31, 2000 and
the related combined statements of income, owners&#146; equity, and cash flows for
the year then ended, which report appears in the Form&nbsp;8-K of
Meritage Corporation
which was filed with the Securities and Exchange Commission on May&nbsp;7, 2001.
</FONT>
<P align="center"><FONT size="2">&nbsp;</FONT>

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<!-- link2 "ITEM 7. &nbsp;&nbsp;FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS." -->
<DIV align="left"><A NAME="001"></A></DIV>
<P align="left"><FONT size="2"><B>ITEM 7. &nbsp;&nbsp;FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS.</B>
</FONT>

<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
        <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%" align="left" nowrap><FONT size="2">(a)</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="91%"><FONT size="2">Not applicable.</FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%" align="left" nowrap><FONT size="2">(b)</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="91%"><FONT size="2">Not applicable.</FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%" align="left" nowrap><FONT size="2">(c)</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="91%"><FONT size="2">Exhibits:</FONT></TD>
</TR>
</TABLE>
<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="100%">
<TR valign="bottom">
        <TD width="12%">&nbsp;</TD>
        <TD width="5%">&nbsp;</TD>
        <TD width="83%">&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD nowrap align="center"><FONT size="2"><u>Exhibit No.</u></FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="left"><FONT size="2"><u>Description</u></FONT></TD>
</TR>
<TR valign="bottom">

        <TD><FONT size="1">&nbsp;</FONT></TD>

</TR>
<TR valign="bottom">
        <TD valign="top" align="center"><FONT size="2">23.1</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">
Consent of McGladrey &#038; Pullen LLP</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
        <TD valign="top" align="center"><FONT size="2">99.1</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">
Press Release</FONT></TD>
</TR>
</TABLE>
</CENTER>
<P align="center"><FONT size="2">&nbsp;</FONT>

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<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<!-- link1 "SIGNATURES" -->
<DIV align="left"><A NAME="002"></A></DIV>
<P align="center"><FONT size="2"><B>SIGNATURES</B>
</FONT>

<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
</FONT>
<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="100%">
<TR valign="bottom">
        <TD width="48%">&nbsp;</TD>
        <TD width="8%">&nbsp;</TD>
        <TD width="3%">&nbsp;</TD>
        <TD width="2%">&nbsp;</TD>
        <TD width="39%">&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD colspan="3" valign="top" align="left"><FONT size="2">MERITAGE CORPORATION</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
        <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
        <TD valign="top"><FONT size="2">Date:&nbsp;&nbsp;June&nbsp;14, 2002</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">
By:
</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">&#047;s&#047; Larry W. Seay</FONT></TD>
</TR>
<TR>
        <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><HR size="1" noshade></TD>
</TR>
<TR valign="bottom">
        <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">Larry W. Seay<br>
Chief Financial Officer and
Vice-President-Finance</FONT></TD>
</TR>
</TABLE>
</CENTER>
<P align="center"><FONT size="2">&nbsp;</FONT>

<!-- PAGEBREAK -->
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<!-- link1 "EXHIBIT INDEX" -->
<DIV align="left"><A NAME="003"></A></DIV>
<P align="center"><FONT size="2">EXHIBIT INDEX
</FONT>

<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="100%">
<TR valign="bottom">
        <TD width="12%">&nbsp;</TD>
        <TD width="5%">&nbsp;</TD>
        <TD width="83%">&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD nowrap align="center"><FONT size="2"><u>Exhibit No.</u></FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="left"><FONT size="2"><u>Description</u></FONT></TD>
</TR>
<TR valign="bottom">

        <TD><FONT size="1">&nbsp;</FONT></TD>

</TR>
<TR valign="bottom">
        <TD valign="top" align="center"><FONT size="2">23.1</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">
Consent of McGladrey &#038; Pullen LLP</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
        <TD valign="top" align="center"><FONT size="2">99.1</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">
Press Release</FONT></TD>
</TR>
</TABLE>
</CENTER>

<P align="center"><FONT size="2">&nbsp;</FONT>



</BODY>
</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-23.1
<SEQUENCE>3
<FILENAME>p66717exv23w1.txt
<DESCRIPTION>EX-23.1
<TEXT>
<PAGE>
                                                                    EXHIBIT 23.1


                         INDEPENDENT AUDITOR'S CONSENT

We consent to the incorporation by reference in the Registration Statement (No.
333-87398) of Meritage Corporation (the "Registrant") and in the Prospectus
Supplement of the Registrant (the "Prospectus Supplement") via the Form 8-K of
the Registrant dated June 14, 2002, of our report dated March 29, 2001 on the
combined balance sheet of Hancock Communities Limited Liability Company and HC
Builders, Inc. (subsidiaries of American West Homes, Inc.) as of December 31,
2000 and the related combined statements of income, owners' equity, and cash
flows for the year then ended, which report appears in the Form 8-K of the
Registrant which was filed with the Securities and Exchange Commission on May 7,
2001 and to the reference to our firm under the heading "Experts" in the
Prospectus Supplement.

/s/ MCGLADREY & PULLEN LLP

Las Vegas, Nevada
June 14, 2002

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>4
<FILENAME>p66717exv99w1.txt
<DESCRIPTION>EX-99.1
<TEXT>
<PAGE>
                                                                    Exhibit 99.1

                       [MERITAGE CORPORATION LETTERHEAD]



                 MERITAGE CORPORATION TO ACQUIRE HAMMONDS HOMES

         DALLAS AND SCOTTSDALE, ARIZ. (JUNE 13, 2002) - MERITAGE CORPORATION
(NYSE: MTH) today announced that it entered into a definitive agreement to
purchase the homebuilding assets of Hammonds Homes, a privately held builder of
quality homes in approximately 40 communities throughout key Texas markets. The
closing of the acquisition is expected to occur on or before June 30, 2002, and
is subject to the satisfaction of certain conditions.

         Hammonds Homes, established in 1987, builds a wide range of quality
homes in the Houston, Dallas/Ft. Worth and Austin, Texas areas with a focus on
serving the move-up housing market. During 2001, Hammonds closed 935 homes at an
average selling price of approximately $193,000, resulting in total revenue of
$181.1 million. The estimated purchase price will be approximately $82.8
million, which includes cash payable at closing and the repayment of existing
debt.

         "Hammonds Homes will enable us to significantly expand our presence in
the Houston and Austin markets and strengthen our Dallas operations," said John
Landon, co-chairman and co-chief executive officer of Meritage. "We believe this
acquisition will be accretive to our 2002 earnings."

         "The acquisition is consistent with the growth plans we have held over
the last 5 years. We continue our strategy of expanding our existing operations
while seeking acquisition candidates that fit culturally, as well as
financially, into our corporate goals," stated Steve Hilton, co-chairman and
co-chief executive officer.

              SECOND QUARTER BEGINS WITH STRONG ORDERS AND CLOSINGS

         Meritage also announced that it recorded strong results for April and
May 2002. New home orders for the two months of April and May 2002 were 810,
with a dollar value of $212.8 million, compared to 428 homes with a dollar value
of $95.3 million for the comparable two months in 2001, a 123% increase in
dollar value. Home closings for the two months of April and May 2002 totaled
677, compared to 429 for the comparable two months in 2001, a 58% increase.
Revenue for April and May 2002 totaled $159.3 million, compared to $98.5 million
for the comparable two months in 2001, a 62% increase. Meritage's Hancock
division, which Meritage acquired effective May 31, 2001, contributed 200 home
closings with a dollar value of $36.2 million in April and May 2002.

                                     -more-
<PAGE>
         ABOUT MERITAGE CORPORATION

         Meritage Corporation designs, builds and sells distinctive
single-family homes ranging from first-time to semi-custom luxury. We were
recently ranked by Forbes magazine as #4 of its "200 Best Small Companies in
America," and have appeared twice on Fortune's list of the "Fastest Growing
Companies in America." We operate in the Phoenix and Tucson, Arizona markets
under the Monterey Homes, Hancock Communities and Meritage Homes brand names, in
the Dallas/Ft. Worth, Austin and Houston, Texas markets as Legacy Homes and in
the San Francisco East Bay and Sacramento, California markets as Meritage Homes.
Please visit our web site at: www.meritagehomes.com.

         Certain matters discussed in this press release are forward-looking
statements within the meaning of the Private Securities Litigation Reform Act of
1995. Such statements include, but are not limited to, statements concerning the
proposed transaction with Hammonds Homes, the ability to expand our presence in
certain Texas markets, and our expectations about the accretive effect of the
acquisition.

         Such statements are based upon the current beliefs and expectations of
our management and are subject to significant risks and uncertainties. Actual
results may differ from those set forth in the forward-looking statements.

         With respect to the Hammonds transaction, these uncertainties include:
the risk that the transaction will not close; and if closed, the risks that the
businesses will not be integrated successfully; that the market and financial
synergies anticipated from the acquisition may not be fully realized or may take
longer to realize than expected; that the acquisition will not be accretive to
earnings within the time period estimated by management, or at all; that
unanticipated expenses and liabilities may be incurred; and that the combined
companies will lose key employees or suppliers.

         In addition, our business is also subject to a number of risks and
uncertainties including: the strength and competitive pricing environment of the
single-family housing market; changes in the availability and pricing of
residential mortgages; changes in the availability and pricing of real estate in
the markets in which we operate; our high level of indebtedness; demand for and
acceptance of our homes; the success of planned marketing and promotional
campaigns; the success of our program to integrate existing operations with our
planned new operations or those of past or future acquisitions; our ability to
raise additional capital; our success in locating and negotiating favorably with
possible acquisition candidates; recent legislative or other initiatives that
seek to restrain growth in new housing construction or similar measures; the
economic impact of foreign hostilities or military action; general economic slow
downs; and other factors identified in documents filed by us with the Securities
and Exchange Commission, including those set forth in the Meritage's Form 10-K
Report for the year ended December 31, 2001 under the captions "Market for the
Registrant's Common Stock and Related Stockholder Matters - Factors that May
Affect Future Stock Performance" and "Management's Discussion and Analysis of
Financial Condition and Results of Operations" and in Exhibit 99.1 of the
Company's Form 10-Q for the quarter ended March 31, 2002. As a result of these
and other factors, the prices of Meritage's securities may fluctuate
dramatically.

                                    # # # #

</TEXT>
</DOCUMENT>
</SUBMISSION>
