American Financial Resources will once again offer some type of funding used by newly built home buyers who the company and several others like Nationwide Home Loans Group and Hyperion Bank have also had in some form due to disruption due to the pandemic.
Some form of these loan products that cover both construction costs and property purchase for the homeowner is returning as the economy shows signs of strengthening. A company executive said it had been more difficult last year to fund the conventional one-time graduation loans offered through government programs due to uncertainties about how long it could take to build, a company executive said.
The non-bank yield, known for its expertise in this type of loan, suggests that increased interest among lenders in home purchase mortgage finance could help widen the type of finance that has a shortage fixes on housing in the market.
"We thought the market had become more stable," said Laura Brandao, president and partner at AFR, in an email, referring to improvements in areas such as licensing and the relative improvement in supply chain access over the course the time this has done the economy reopened.
While challenges like the high price of materials are still postponing construction times, they have at least become more predictable, she noted.
"While construction 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 traditional one-time-close products, which will officially take place on May 3rd, rounds off a range of loans that AFR and its mortgage broker partners are offering to expand access to home inventory. These include loans to finance prefabricated houses or modular apartments, as well as loans that provide access to lower down payments. The company offers many of these on a one-off basis.
Mortgage applications for newly built homes have rallied unevenly after the slump when the coronavirus first hit the U.S. last year.