Textron Financial No Longer Offers Golf Mortgage Financing

Textron move will probably inhibit developers’ and bankruptcy trustees’ efforts to unload underperforming golf assets.

Palm Coast, Florida – February 27, 2009Textron Financial Corp. has long been a leader in the golf mortgage financing business. Citing "unprecedented and turbulent changes in the global financial markets, " the company announced that it will no longer originate new golf course mortgage loans. It will continue to service existing loans until maturity or until a new lender is found. Future lending will be limited to financing the purchase of other Textron products, including Cessna aircraft, Bell helicopters, E-Z-GO golf carts, and Jacobsen turf care products.
Textron’s decision comes at a time when the golfing industry is suffering. Revenues are down while fixed costs remain stubbornly inflexible. Many high value real estate developments anchored by signature golf courses are suffering from a dearth of home and lot sales, unfilled membership rosters, and delinquent dues. Several high visibility courses are involved in bankruptcies. A disruption in available financing will make it even more difficult to sell these assets. Cash will be king and prices will be low.
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2 replies
  1. LouM
    LouM says:

    Try tennis.

    Golf is an expensive sport to play.

    Developers used the golf course as a sales tool to sell real estate.

    The need for new golf courses are in the decline so lack of mortgages for golf courses will not be a major issue.

    If you can’t find a suitable tee time on a local golf course, you can always go to the Tennis Center for a set or two of tennis.

    Tennis players believe that it is more challenging to hit a moving tennis ball then to hit a stationary golf ball. 🙂

  2. yoganand
    yoganand says:

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