United States, September 4, 2025
News Summary
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.
EasyBuild leverage raised to 90% LTC and 75% LTV; RTL per‑unit limit jumps past $5 million
A private real estate lender based in Austin has raised leverage on new‑construction loans and widened per‑unit limits on its short‑term residential financing programs to respond to a nationwide housing shortfall. Effective immediately, experienced builders with a track record of at least three completed construction projects can qualify for up to 90% loan‑to‑cost (LTC) and 75% loan‑to‑value (LTV) under the lender’s ground‑up financing product. Separately, the lender expanded its Residential Transition Loan family to allow loans exceeding $5 million per unit.
What changed and why it matters
The updated terms increase maximum leverage from previous caps of 85% LTC and 70% LTV. The move is presented as a response to rising demand for flexible capital as the country faces a substantial housing deficit. One recent industry analysis cited in the announcement estimates a shortfall of roughly 4.7 million homes nationwide, a figure used to frame the urgency behind the program changes.
Who can access the enhanced terms
Enhanced leverage is available to borrowers who can demonstrate a proven construction track record — specifically, at least three closed or completed deals. The higher leverage is intended to let experienced builders start larger projects with less upfront equity, potentially speeding ground‑up construction of single‑family homes and multifamily units.
Residential Transition Loan (RTL) expansion
The lender’s RTL product family — which covers short‑term bridge and fix‑and‑flip loans as well as new‑construction financing — now supports per‑unit loan amounts above $5 million. Program features include interest rates that start around 8.90%, optional no‑appraisal loans, and expedited closings that can complete in roughly 48 hours. The expanded RTL is available across most of the country and is positioned to accommodate both single‑family and multi‑unit investment projects.
Context: prices, investor activity and market strain
The financing changes arrive amid steadily rising home prices and a notable portion of transactions driven by investors. National data from mid‑2025 showed the median existing‑home price at a record high and a year‑over‑year rise of about 2%, with regional medians in the Northeast and West well above the national median. Investors represented roughly 14% of transactions in a recent month, a trend that adds demand for short‑term renovation and construction capital.
Other local and sector developments
City staff in a large Texas city recently reviewed options for public financing to spur accessory dwelling unit (ADU) construction. Their analysis concluded that a broad, publicly funded ADU program would likely have limited reach among lower‑income households without substantial subsidy. Staff recommended a small pilot aimed at moderate‑income homeowners in high‑displacement neighborhoods if the city council allocates roughly $1.5 million for loans, staffing and outreach. The memo noted pre‑development costs for ADUs commonly fall between $20,000 and $30,000, a barrier for many low‑income owners.
In affordable housing finance, a suburban project northeast of a major Texas city secured about $60.4 million in construction financing for a 324‑unit development that will use 4% low‑income housing tax credits and targets households earning under 60% of area median income. The development includes a mix of two‑ to four‑bedroom units, on‑site amenities and services, and is scheduled for completion in early 2027.
In the energy‑infrastructure sector, developers closed approximately $286 million in project financing this year for two standalone battery storage projects totaling about 300 MW / 800 MWh, with commercial operations expected later in the same year. That deal combined construction financing, tax‑equity bridge facilities and a letter of credit component, arranged by global banks and supported by external counsel on both borrower and lender sides.
Practical effects for builders and investors
The higher leverage and larger per‑unit caps reduce the amount of cash and equity investors must commit up front for qualifying projects. Faster closings and no‑appraisal paths can help buyers move quickly in competitive markets, though higher leverage typically comes with underwriting requirements and may affect loan pricing and terms. Builders without the specified track record will still face prior limits and may need to rely on other financing sources or joint ventures to meet equity needs.
Where to find more information
The lender publishes program details and quote request pages on its website for investors seeking specific term sheets or eligibility checks. Market participants considering large deals should compare program features, rate floors, appraisal requirements and state coverage before committing to a funding source.
FAQ
What are the new maximum leverage ratios for new‑construction loans?
The updated program offers up to 90% LTC and 75% LTV for eligible, experienced builders.
Who qualifies as an experienced builder?
Borrowers generally must show at least three completed construction projects to access the enhanced leverage tiers.
How high are RTL per‑unit loan limits now?
Per‑unit limits for the Residential Transition Loan family have been increased to levels above $5 million.
Do these programs cover all states?
The expanded RTL coverage extends to most states. Specific state eligibility and licensing restrictions can affect availability.
What other program features should borrowers watch for?
Key features include interest rates starting near 8.90%, possible no‑appraisal options, and rapid closing timelines that may be available in qualifying situations.
Will higher leverage increase risk for builders?
Higher leverage lowers upfront equity needs but may increase sensitivity to cost overruns, market shifts and valuation changes. Careful project budgeting and contingency planning remain critical.
Key features at a glance
| Feature | Details |
|---|---|
| EasyBuild maximum LTC | 90% (for eligible builders) |
| EasyBuild maximum LTV | 75% (for eligible builders) |
| Experience requirement | Minimum 3 completed construction deals |
| RTL per‑unit limit | Over $5,000,000 per unit |
| Interest rate starting point | Approximately 8.90% |
| No‑appraisal option | Available on select deals |
| Closing speed | Potentially as fast as 48 hours |
| Geographic coverage | Most U.S. states (subject to licensing) |
Deeper Dive: News & Info About This Topic
Additional Resources
- Business Insider: Easy Street Capital increases leverage for new construction financing
- Wikipedia: Construction loan
- GlobeNewswire: Easy‑Street Capital increases Residential Transition Loan limits to over $5 million per unit
- Google Search: Easy Street Capital Residential Transition Loan limits
- GlobeNewswire (PDF): Easy‑Street Capital investor/materials download
- Google Scholar: construction loan leverage
- Austin Monitor: Housing staff suggest ADU pilot program aimed at 80% MFI households
- Encyclopedia Britannica: Accessory dwelling unit
- REBusinessOnline: Associated Bank provides $60.4M construction loan for metro Austin affordable housing project
- Google News: construction financing housing shortage
Author: Construction TX News
TEXAS STAFF WRITER The TEXAS STAFF WRITER represents the experienced team at constructiontxnews.com, your go-to source for actionable local news and information in Texas and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Texas Construction Expo, major infrastructure unveilings, and advancements in construction technology showcases. Our coverage extends to key organizations like the Associated General Contractors of Texas and the Texas Building Branch, plus leading businesses in construction and real estate that power the local economy such as Austin Commercial and CMiC Global. As part of the broader network, including constructioncanews.com, constructionnynews.com, and constructionflnews.com, we provide comprehensive, credible insights into the dynamic construction landscape across multiple states.
