Private lender increases construction loan limits to give builders more buying power for new housing projects.
United States, September 4, 2025
A nationwide private lender has increased leverage in its EasyBuild and Residential Transition Loan (RTL) programs to accelerate construction amid a national housing shortfall. EasyBuild maximums now rise to 90% loan‑to‑cost and 75% loan‑to‑value for qualified borrowers with at least three completed projects. RTL per‑unit limits jump to more than $5 million, with rates starting near 8.90%, no‑appraisal options, and potential 48‑hour closings on qualifying deals. The changes aim to give experienced builders more buying power while local ADU pilots and public programs remain important for smaller, affordable infill work.
A nationwide private lender has increased its ground‑up construction leverage to 90% Loan‑to‑Cost (LTC) and 75% Loan‑to‑Value (LTV) for borrowers with a proven track record, and earlier this summer raised per‑unit loan limits on its residential transition loan family to more than $5 million per unit. The moves, effective in late summer 2025, aim to give experienced builders faster access to larger deals amid a persistent shortage of homes across the country.
The updated new‑construction product now offers up to 90% LTC and up to 75% LTV to borrowers who have completed at least three construction projects. These limits rose from prior caps of 85% LTC and 70% LTV. The residential transition loan family, which covers fix‑and‑flip, bridge and new‑build loans, expanded its per‑unit cap from $2 million to over $5 million, supporting single‑family and multi‑unit transactions in most U.S. states.
The lender framed the changes as a market response to strong demand for flexible capital and to long‑running supply shortfalls. Third‑party housing data cited in the announcement put the national home deficit at roughly 4.7 million units, underscoring pressure to increase production. In addition, recent median home price gains and a notable investor share of transactions have intensified the need for fast, large‑scale project financing.
The expanded loan family highlights several operational features that aim to move deals quickly: interest rates that start in the mid‑single digits for certain products (a starting rate of 8.90% was noted for the transition loan family), optional no‑appraisal financing, and the capability for 48‑hour closings on eligible transactions. The per‑unit cap raises make it possible to underwrite high‑value single units or large multi‑unit components without pushing those deals into slower, more layered capital stacks.
Experienced builders and investors who already have a portfolio of completed projects are the primary beneficiaries, since the higher leverage reduces the amount of upfront equity required to start construction. The changes aim to enable quicker starts on single‑family builds and multifamily projects, and to allow sponsors to scale portfolios more rapidly without sourcing additional equity partners.
The broader market has seen several sizable financings for both energy infrastructure and affordable housing this year, reflecting active capital markets for construction. One developer closed a nearly $286 million package to build two large battery energy storage projects with a combined capacity of 300 MW / 800 MWh. Separately, a syndicated construction loan of $60.4 million was placed for a 324‑unit affordable housing community scheduled for completion in early 2027; that project is financed with 4% Low‑Income Housing Tax Credits and will serve households at under 60% of area median income.
Local housing staff analyzed the idea of a publicly funded accessory dwelling unit (ADU) financing program and concluded that a broad, publicly funded ADU program would likely see limited uptake among the lowest‑income households. Staff suggested a small pilot for moderate‑income homeowners, estimating pre‑development costs of $20,000–$30,000 and a pilot budget near $1.5 million to cover loans, staffing and outreach. The recommendation called for deferred, interest‑free loans covering a portion of construction costs, with homeowners securing traditional financing for the remainder.
Industry conferences and regional events this fall will continue to spotlight multifamily, industrial and retail development trends, capital availability, and operations—providing forums where developers, lenders and municipal staff can compare approaches and financing options for projects across different markets.
The higher leverage and larger per‑unit caps aim to speed construction starts and expand the size of projects private capital can support. That may reduce barriers for experienced sponsors to take on larger or higher‑cost builds, while public agencies continue to debate targeted, small‑scale public interventions for ADUs and deeply affordable housing.
A: Builders with at least three completed projects can now access higher leverage—up to 90% of project cost or 75% of property value—reducing the equity they need to begin work.
A: The loan family increased per‑unit limits from $2 million to over $5 million, allowing single units or units within larger developments to be financed at higher dollar values.
A: The expanded program supports deals across the vast majority of U.S. states; specific program availability and terms depend on project details and borrower experience.
A: Local staff advised that a broad public ADU program would likely reach moderate‑income rather than low‑income households, and recommended a small pilot with about $1.5 million in funding to test targeted assistance.
A: Large project financings in energy storage and syndicated loans for affordable housing show that construction capital is flowing across different sectors, which can influence rates, terms and competition for materials and labor.
| Feature | Detail |
|---|---|
| EasyBuild maximum LTC | 90% (for borrowers with 3+ completed projects) |
| EasyBuild maximum LTV | 75% |
| Previous limits | 85% LTC / 70% LTV |
| RTL per‑unit cap | Over $5,000,000 per unit (up from $2,000,000) |
| Interest rate notes | Starting point cited at 8.90% for some RTL products |
| Speed features | No‑appraisal options; 48‑hour closings on eligible loans |
| Geographic reach | Supports deals in most U.S. states (48 states referenced) |
| Eligibility | Enhanced leverage for experienced borrowers (3+ completed projects) |
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