Non-Conventional Financing Backed More Than a Quarter of New Home Deals

October 21, 2019
House cutout in grass
Image by moerschy from Pixabay 

More than 25% of new homes were purchased last year with non-conventional financing.

An analysis by the National Association of Home Builders found that 28.6% of new single-family homes were financed by cash, loans backed by the Federal Housing Administration, Veterans Administration, the Rural Housing Service, Habitat for Humanity, loans from individuals, or by state and local government-mortgage backed bonds.

The reliance on non-conventional forms of financing varied across the United States, with its share at 38.7% in the West South Central but accounting for only 11.6% of new single-family home starts in the East South Central division. To see charts showing which type of non-conventional financing dominated which region …  

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