Industry data
Financing for home builders: what the loan data shows
1,426 SBA 7(a) loans went to home builders recently, at a median of $150,000. The lenders that make them, the terms they write, and what underwriters look at.
1,426 SBA 7(a) loans went to home builders in the most recent fiscal years, at a median of $150,000 over 10 years. 15.6% went to new or under-two-year-old businesses, and the most active lender was Northeast Bank.
What a home builder loan actually looks like
These are approvals, not advertised ranges. Computed from SBA 7(a) loan-level FOIA data released 2026-06-30.
| Measure | Home builders | All 7(a) borrowers |
|---|---|---|
| Loans approved, fiscal years 2023 to 2026, using data released June 2026 | 1,426 | 214,102 |
| Median loan | $150,000 | $150,000 |
| 25th - 75th percentile | $50,000 - $276,250 | $50,000 - $500,000 |
| Median term | 10 years | 10 years |
| Median initial rate | 10.75% | 10.25% |
| Share to new businesses | 15.6% | 33.6% |
| Charge-off rate, FY2010-19 | 9.8% | 7.1% |
What stands out
Reading these figures against all 7(a) borrowers:
- Loan sizes are typical. The median of $150,000 is within a few percent of the $150,000 national median across all 7(a) borrowers, so nothing about this market is unusual on size.
- This is a hard market for new businesses. Only 16% of these loans went to startups, against 34% nationally. If you are pre-revenue, work from the startup table below rather than the main list.
- Lending here is fragmented. The top three lenders made only 22% of these loans between them, so no single institution owns this market. That is good news: it means shopping genuinely pays.
- Rates run higher here. The median initial rate of 10.75% is 0.50 points above the 10.25% national median, which usually tracks loan size and perceived sector risk rather than geography.
- Lenders have been burned here before. 9.8% of loans to this market from the FY2010-2019 cohorts were charged off, against 7.1% overall. That history is why underwriting in this sector is tighter than the numbers alone would suggest — it is not personal.
Which lenders actually fund home builders
Ranked by loans approved in this niche. The median, startup share and rate describe each lender's own loans to home builders, not its national averages — which is how you spot a genuine specialist.
| Lender | Loans | Median loan | Startup share | Median rate |
|---|---|---|---|---|
| Northeast Bank | 126 | $200,000 | 12% | 10.50% |
| U.S. Bank | 99 | $40,000 | 29% | 10.49% |
| TD Bank | 91 | $100,000 | 21% | 11.05% |
| Manufacturers and Traders Trust Company | 89 | $50,000 | 17% | 12.00% |
| The Huntington National Bank | 84 | $169,500 | 12% | 10.50% |
| BayFirst National Bank | 80 | $150,000 | 0% | 12.25% |
| Readycap Lending, LLC | 74 | $126,000 | 3% | 13.50% |
| JPMorgan Chase Bank | 69 | $150,000 | 4% | 11.75% |
| 1st Financial Bank USA | 59 | $1,000,000 | 2% | 10.00% |
| Newtek Bank | 44 | $250,000 | 14% | 10.88% |
Where these businesses borrow
Most active states for home builders: California (153), New York (130), Texas (94), Florida (91), Massachusetts (82), Washington (59).
Which financing fits
| Product | Fit for this sector | Typical cost |
|---|---|---|
| SBA 7(a) | The dominant vehicle in this niche | 10.0% - 14.0% APR |
| Equipment financing | For the hard assets, often cheaper separately | 7.0% - 30.0% APR |
| Line of credit | For seasonality and payroll timing | 9.0% - 60.0% APR |
| SBA microloan | If you need under $50,000 | 8.0% - 13.0% APR |
| Business acquisition loan | If you are buying an existing operation | 10.0% - 14.0% APR |
Before you apply
- Check coverage first. Run the payment through the affordability calculator at 1.25x.
- Shortlist from the lender table, favouring ones whose median loan here is close to what you need.
- Assemble the documents — see the checklist.
- If you are buying rather than starting, read business acquisition loans first; the injection rules and diligence are different.