The year 2016 was an eventful one for home building.
Rural Housing Service’s New Loan Option Remains Underutilized
Of the 3,439 single-family construction loans guaranteed by the Rural Housing Service for the first quarter of 2017, only nine involved the new single-close construction-to-permanent financing option.
National Mortgage News reports that the program, which was launched in March 2016, has fallen flat so far. Only 39 single-close loans totaling $7.5 million were made in the fiscal year 2016.
RHS designed the single-close program to be more attractive to lenders and builders with the loan made to the homebuyer, not the builder. As a result, the builder doesn't have to secure financing or a line of credit for the construction phase.