Home builder Lennar Corp. (LEN) is offering some buyers a deal that might bring back memories of the housing frenzy: No money down. No closing costs.

It's yet another strategy from builders - following free vacations, kitchen upgrades and down-payment savings plans - as they struggle to sell houses amid mounting bargain-priced foreclosure inventory.

But this latest campaign looks like a twist on the bubble's easy lending practices still feeding the foreclosure crisis. Back then, buyers could get keys for nothing out of their pockets, providing little incentive to pay the mortgage once the house loses value or the owner struggled financially.

The company, one of the nation's largest builders, did not comment. Its shares traded recently at $9.98, up 1 cent.

This time around, Lennar appears to be careful: The offer comes with fine print listed on the Web site that starts by saying it is available on "select homes."

The purchase agreement must be written on or before Friday. Applicants must reserve loan funds and closing can't occur later than May 29. Buyers have to obtain financing via Lennar, which likely makes the tight time frame possible. Like all builders and lenders, it is undoubtedly screening applicants carefully, ensuring they document income and have solid credit.

Lennar is targeting first-time buyers who don't have to worry about selling an existing home. The Web site touts the federal tax credit of up to $8,000 available to qualified buyers for deals done before Dec. 1. The tax credit could fund the down payment.

"Now First-Time Homebuyers have the EDGE," the Web site says. "...PLUS $0 Down and $0 Closing Costs."

To be sure, the Federal Housing Administration is working on a plan that could produce similar results. The idea is to allow some buyers to tap the federal tax credit at closing via a short-term loan, instead of having to wait until tax time.

Not everyone is convinced that the FHA's possible move is a good idea.

"Much like the lax lending standards of the housing bubble, all it succeeds in doing in our view is pulling sales forward and encouraging speculative buyers into the market," Michael Widner, an analyst with Stifel Nicolaus Equity Research, noted last week. "While that may look good for a quarter or two, we already know how it could potentially end."

-By Dawn Wotapka, Dow Jones Newswires; 201-938-5248; dawn.wotapka@dowjones.com