Nearly two-thirds of single-family home builders are reporting a severe lack of credit for housing production, threatening the fragile housing recovery before it has time to take hold, according to a new builder survey of acquisition, development, and construction (AD&C) financing conducted by the National Association of Home Builders (NAHB).
In the latest NAHB survey of AD&C financing conditions, 63% of builders stated that the availability of credit for single-family construction loans worsened in 2Q 2009.
Builders reporting deteriorating credit conditions cited the following reasons: 80% said that lenders are lowering the allowable loan-to-value ratio, 76% reported that lenders are not making new loans, 75% stated that lenders are reducing the amount they are willing to lend, and 62% said that lenders are requiring personal guarantees or collateral not related to the project.
Two-thirds of respondents reported putting single-family construction projects on hold until the financing climate gets better.
to Daily News