Currently Reading

Exclusive Research: Banks and Financing


Exclusive Research: Banks and Financing

Builders weigh in on their love-hate relationship with the banking industry, and the non-traditional sources of capital they are using. 

By Mike Beirne, Editor September 15, 2014
This article first appeared in the PB September 2014 issue of Pro Builder.

Traditional loans from banks are the lifeblood of home builders. National figures from the FDIC and this survey suggest the availability of AD&C loans improved in the first quarter of 2014 compared with both previous quarters and Professional Builder’s 2011 Finance Survey. Yet there are still reminders that credit is tight.

Methodology and Respondent Information
This survey was distributed between July 31 and August 14, 2014, to a random sample of Professional Builder’s print and digital readers. No incentive was offered. By closing date, a total of 125 eligible readers responded. Respondent breakdown by discipline: 27 percent diversified builder/remodeler; 20.6 percent custom home builder; 15.9 percent production builder for move-up/move-down buyers; 7.9 percent architect/designer engaged in home building; 4.8 percent luxury production builder; 4.8 percent production builder for first-time buyers; 4 percent multifamily; 2.4 percent manufactured, modular, log home, or systems builder; and 12.7 percent other. Approximately 47 percent of respondents sold one to five homes in 2013, and 20.2 percent sold more than 50 homes.
As a California builder remarked about his experience with banks, “They run you through fees, but no loan at the end; [I] doubt they had money to lend.” A  builder in New York noted that some banks are demanding steep terms such as in-house funding levels between 35 and 50 percent. While some banks are willing to extend development loans, another New York builder said the terms are very expensive.
For more results, see the charts from the survey below.

Related Stories

Housing Markets

August Housing Markets Still Down, but Less So

While active inventory, new listings, and closed sales were all still historically low in August, the declines weren't as sharp as in previous months

Market Data + Trends

Home Size and Price Trends for Age-Restricted, Single-Family Housing

how do the characteristics of new, age-restricted, single-family homes vary from other single-family homes?

Market Data + Trends

Why Is the Housing Market Behaving This Way?

2023 has been a confusing time in the housing market, but there's an upside for new-home builders


Top Articles


More in Category

COVID-19 may be easing its grip on the U.S. after a disastrous two years, but lingering supply chain disruptions have builders holding onto their pandemic business tactics

An archive of NHQA-winning companies that represent home building's best in Total Quality Management

Don’t let the current hype about single-family B2R communities obscure the need to create long-term sustainability and asset value


Create an account

By creating an account, you agree to Pro Builder's terms of service and privacy policy.

Daily Feed Newsletter

Get Pro Builder in your inbox

Each day, Pro Builder's editors assemble the latest breaking industry news, hottest trends, and most relevant research, delivered to your inbox.

Save the stories you care about

Lorem ipsum dolor sit amet lorem ipsum dolor sit amet lorem ipsum dolor sit amet.

The bookmark icon allows you to save any story to your account to read it later
Tap it once to save, and tap it again to unsave

It looks like you’re using an ad-blocker!

Pro Builder is an advertisting supported site and we noticed you have ad-blocking enabled in your browser. There are two ways you can keep reading:

Disable your ad-blocker
Disable now
Subscribe to Pro Builder
Already a member? Sign in
Become a Member

Subscribe to Pro Builder for unlimited access

Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.