With mortgage rates showing signs of improvement and housing inventory still very low, many homebuyers are looking beyond existing resale properties to the benefits of new construction homes. The Providence Group (TPG), the premier developer and homebuilder of award-winning neighborhoods throughout Atlanta, announces creative lending options and builder incentives that new home shoppers should consider. 

According to the National Association of Realtors®, existing home sales in October 2023 were 14.6% lower than they were a year earlier. In the Atlanta market, housing inventory is at 2.5 months of supply, far short of equilibrium, which is 6 months.  “The housing shortage will get worse over the next year—we simply don’t have enough supply,” says John Hunt, chief analyst for MarketNsight.

For example, Hunt says, to get back to “normal” and meet demand, Atlanta alone would need more than 45,000 additional homes on the market over the next 12 months. And making the problem worse, is that homeowners who might normally sell their home are choosing not to because they do not want to get a new mortgage with higher rates.  This translates to new construction homes being a great option for home buyers because they are able to offer more financing options than pre-existing homes. 

To help buyers, The Providence Group is offering creative options to buy in one of their premier neighborhoods. For example, some buyers are getting a lower mortgage rate in exchange for an upfront payment known as a “rate buydown”. 

 “We recognize that not every buyer is the same and that they have unique situations, so we picked the best-in-class lenders in the market to provide a variety of options to our customers.” said Kristine Forbes, Director of Sales at The Providence Group.  In many cases, we are offering much larger closing costs incentives than we have in the past to offset our buyer’s payment affordability.”

The Providence Group has carefully selected preferred lenders who have programs targeted specifically to new construction. Some of these lenders are offering lender credits, which when combined with closing cost incentives from TPG, are being used to help buy the rate down – sometimes permanently.

This is one reason why new homes, including those under construction, accounted for 29% of all single-family homes for sale nationwide last summer. That’s the highest rate since at least 1983. On average, new homes have accounted for only 13% of market since 1983.   

The creative lending promotions that The Providence Group and its lenders are offering are meant to attract buyers to certain development projects, especially first-time homebuyers. Creative financing options from TPG’s preferred lenders can make a new-construction home purchase workable for a first-time buyer.  

“What many buyers, especially first-time buyers need most is cash to close and monthly payments they can afford, said John Semon, a mortgage professional with Capital City Home Loans – a preferred TPG lender. “Combining our specialized lending product offerings with The Providence Group’s builder incentives, we are seeing buyers achieving below market pricing for their dream home.”

A reduction in the amount of cash expended can make all the difference for buyers, even first-time homebuyers. TPG is currently offering much lower mortgage rates through their lenders to attract buyers who would otherwise be priced out of the new home market.  

Being a preferred lender with The Providence Group, we can provide TPG buyers with six unique programs that allow them to purchase their dream home with no money down,” said Kelly Allison, Southeast Regional Sales Leader at Academy Mortgage. “TPG homebuyers that need a lower payment can take advantage of our programs that allow the seller and lender to buy down their rate for up to three years with Academy paying up to 2.25% in lender credit. We also offer a 7-year rate pledge that allows clients to refinance at no cost when interest rates drop even lower.”

Learn more about The Providence Group’s closing costs/rate buy down programs by visiting the Community Sales Manager at one of our unique communities. Learn more about each TPG community here.