Builders exploring options to repair our badly-broken housing finance system

The NAHB is helping builders find alternatives.

More than 55,000 building-industry professionals gathered last month for the International Builders’ Show (IBS) in Vegas. Though the housing market is showing signs of a slow recovery, builders are being encouraged to diversify and look to alternative financing options. Major banks and traditional lenders are being scrutinized by regulators and remain unreliable sources of credit for new residential projects. Small builders must consider other sources, such as investors, partners and even family and friends.

The NAHB’s Partnership Pavilion brought builders and representatives for investment and private equity funds together to consider alternative financing. Both the financial firms and builders found that participating in the pavilion put them in touch with viable business partners.

The NAHB Board has approved plans to restore and improve the secondary mortgage market and overall housing finance system. The resolution recognizes the caution and deliberation that will be necessary as major changes are implemented to correct the flaws of the past system. Much work is ahead to restore the flow of credit for home mortgages and acquisition, development and construction (AD&C) loans.

To read more about the NAHB’s recommendations for small builders, check out the article “Builders Looking to Repair Broken Home Finance System” in their Feb. 1 Nation’s Building News at

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