American Financial Resources will once again offer some type of financing used by newly built home buyers who have also had some form of exposure to it and some others like Nationwide Home Loans Group and Hyperion Bank Disruption from the pandemic.
Some form of these loan products that cover both construction costs and homeowner property purchases are returning as the economy shows signs of an upturn. The conventional one-time loans offered as part of government programs have been more difficult to finance last year due to uncertainties about the construction time, according to a company executive.
The return of the non-bank known for this type of loan speaks for it Increased interest among lenders in financing home mortgages could help widen the type of financing that counteracts housing shortages in the market.
“We felt the market had become more stable,” said Laura Brandao, president and partner at AFR, in an email, citing improvements in areas like licensing and relatively improved access to supply chains over time reopened due to the economy.
While challenges like the high price of materials are still pushing construction schedules, they have at least become more predictable, she noted.
“While the build time is still longer than it was before Covid, it is more consistent so we understand what to expect,” she added.
AFR’s reintroduction of conventional one-time closing products, officially due May 3rd, completes a range of loans offered by AFR and its mortgage broker partners aimed at expanding access to home equity. This includes loans that finance manufactured or modular housings and those that give access to lower down payments. The company offers many of them on a single close basis.
Mortgage applications for newly built homes have seen an uneven recovery after the break-in when the coronavirus first hit the US last year.