Exhibit 16.1



June 30, 2004



Securities and Exchange Commission
Washington, D.C.  20549

Ladies and Gentlemen:


We were previously principal accountants for Meritage Corporation (the Company)
and, under the date of February 16, 2004, we reported on the consolidated
financial statements of the Company and subsidiaries as of and for the years
ended December 31, 2003 and 2002. On June 15, 2004, our appointment as principal
accountants was terminated. We have read the Company's statements included under
Item 4 of its Form 8-K/A dated June 30, 2004, and we agree with such statements,
except we are not in a position to agree or disagree with the Company's
statements that follow (subsequent to the first quarter of 2004 as it relates to
item c. below):



    (a) On June 15, 2004, the audit committee of the Board of Directors of the
        Company approved the appointment of Deloitte & Touche LLP as the
        Company's independent auditors for the fiscal year ending December 31,
        2004, subject to Deloitte & Touche's completion of new client acceptance
        procedures (which have been completed as of June 22, 2004), and the
        dismissal of us as the Company's independent auditors, or that the
        action followed a decision by the Board of Directors of the Company on
        June 9, 2004, to accept the audit committee's recommendation to change
        the Company's auditors for the Company's fiscal year ending December 31,
        2004, effective upon selection of an alternate accounting firm, and to
        delegate to the audit committee the responsibility of selecting the
        Company's auditors for such period from the accounting firms recommended
        by the audit committee to the Board of Directors, or


    (b) The Company did not consult with Deloitte & Touche regarding any matters
        or events described in Item 304(a)(2)(i) and (ii) of Regulation S-K,
        although the Company did discuss with Deloitte & Touche (and other firms
        the Company interviewed) a number of issues pertaining to their
        expertise in the homebuilding industry, including their experience in
        implementing FIN 46R. The Company did not, however, discuss any
        particular transaction or the type of the audit report that they might
        issue on the Company's financial statements, or

    (c) To date, the Company believes that it has implemented FIN 46R in
        accordance with KPMG's interpretations.

Very truly yours,

/s/ KPMG LLP