New-home buyers have options in how they choose to finance their homes, so the National Association of Home Builders analyzed Census Bureau Survey of Construction data to break down the numbers.
The South Atlantic division was most dependent on non-conventional financing, with its share exceeding 40% of the market on new single-family homes started in 2015. 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, home buyers 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.
In the East South Central division 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.
To view the rest of the NAHB’s findings, click below.