Ever Wonder How Other People Are Financing Their Homes

Dated: 08/31/2016

Views: 409

The National Association of Home Builders (or NAHB) takes a look at census results each year, and can tell us how people are actually financing their homes. In 2015, NAHB reports that the majority of homes were financed by unconventional means. 

Johnson City Homes

The consensus Survey of Construction (or SOC) found that new single-family homes started in 2015 in the south were most dependent on non-conventional financing, with its share exceeding 40% of the market. The West South Central and New England divisions registered similarly high shares but relied on very different types of non-conventional financing. In New England, a third of all homes started in 2015 were cash purchases, while loans insured by the Federal Housing Administration (FHA) accounted for less than 3% of the market. In contrast, homebuyers in the South Atlantic and West South Central division relied more heavily on FHA- and VA-backed loans that together accounted for more than 26% and 21% of the market, respectively.
At the opposite end of the spectrum is the East South Central division where only 16% of new homes started in 2015 were financed using non-conventional methods. This share is less than half of the US average of 34.5%, making it the lowest share of non-conventional financing in the nation.
A reduction in FHA mortgage insurance premiums was implemented at the start of 2015, and as a result, FHA-backed loans regained their status as the most prevalent form of non-conventional financing of new home purchases – the status they temporarily lost to cash purchases a year earlier following the implemented decline in the 2014 FHA loan limits. 
Curious about our area and most used methods of finance? Give us a call! We'd love opportunity to discuss loan options with you that will best fit your situation. We also have many trusted lending partners who can work with you in unusual or unique situations. Feel free to call us at (423) 433-6517, or come by our office inside Keller Williams Realty at 1033 Hamilton Place in Johnson City.  Let's sit down face-to-face and talk finance!

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Rayne Price

Holding a BS in Environmental Science, and MA in Education, real estate was not Shields Team Buyer Specialist Rayne Price's first career choice. It was only after encouragement from his wife and a cl....

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