Developers of affordable housing are having a tougher time lining up financing. Amid the COVID-19 pandemic, there is significant uncertainty that is making lenders reticent, according to real estate development executives.
Affordable housing tenants typically don’t have significant cash reserves and the delinquency rates during the pandemic have gone up. All forms of construction financing have gotten more difficult to secure, but affordable housing stands out.
Lenders want to throttle back on the amount of leverage they have and be able to sell off loans that they make. Uncertainty over lease-up and rental levels during the economic crisis complicates their efforts.
Related Stories
Economics
Why Did Mortgage Rates Rise Last Week?
The recent uptick in mortgage rates come as a result of the senate runoff elections in Georgia last week, says Zillow. The close race in Georgia…
Financing
Mortgage Rates Creep Up, Send Homeowners Running to Refinance
Homeowners who have been hesitant to refinance their mortgages are now running as mortgage rates creeped up last week. Going from 2.86% to 2.88%…
High-Performance Homes
Jim Nostedt on How High Performance Can Beat Code-Built Homes on Price
SEEFAR's Jim Nostedt shares how an appraisal/analysis called Total Cost of Building Ownership reveals the true cost of building and operating a sustainable building
