But the Red Bank, NJ-based Hovnanian has, for some time, had designs on a bigger target--the national stage. The company took a small step in that direction recently when it acquired Matzel & Mumford of Hazlet, NJ for $8.8 million in cash and an undisclosed amount of stock.

Now, Hovnanian has made its imprint on the national residential market with the acquisition of Washington Homes Inc., based in Maryland. Hovnanian will pay $77.4 million in cash or stock, and will assume an estimated $60 million in debt.

The combination of Hovnanian, a $1.2 billion company ranked 17th largest in the country in homebuilding, and Washington Homes, a $470 million ranked 34th, creates a housing behemoth ranked as the ninth largest homebuilder in the US. If the deal passes shareholder and regulatory scrutiny, Hovnanian would push past Beazer Homes USA of Atlanta and the Del Webb Corp of Phoenix into the top 10. The country's largest homebuilder is the Pulte Corp. of Bloomfield Hills, MI, which last year had gross revenues of just under $3.9 billion.