The 2025 outlook for new construction lending is complex. At a high level, housing starts appear to be slowing, and the broader market feels cautious. But for some private lenders, a different story is unfolding. The national housing shortage hasn’t gone away, and many traditional lenders, who pulled back due to economic uncertainty and rising interest rates, are stepping aside slightly.
These changes have created a window of opportunity for private lenders who are ready to act. However, this market isn’t for everyone. It favors lenders who can manage the current level of risks that come with construction projects, including rising material costs and labor constraints. For those willing to lean in, a better chance of success depends on having the right systems in place to monitor progress, manage disbursements, and protect capital with more control than other lenders may be able to offer.
The key challenge is clear: how to meet the ongoing demand for new homes without taking on the same risks that have caused others to retreat. For lenders looking to grow, the answer lies in using technology that brings real-time insight and better decision-making into the process.
That’s exactly what Valligent and Veros Real Estate Solutions (Veros) deliver. Their tools are built to help lenders move confidently in this evolving space—supporting faster funding, better oversight, and smarter risk management.
Delays in the Construction Lifecycle
Unlike traditional mortgages, new construction loans are disbursed in phases. Each “draw” is tied to a specific milestone in the project. Before funds are released, lenders need to verify that the work has been completed to spec.
Traditionally, this has meant in-person inspections. But scheduling delays, travel logistics, and limited appraiser availability can slow everything down. That creates frustration for both the lender and the builder, while also raising the risk of cost overruns or missed deadlines.
Digital Tools That Keep Projects on Track
Valligent and Veros understand how costly those delays can be. That’s why they’ve developed solutions designed to help private lenders by making inspections faster, more consistent, and easier to manage.
1. Verifying Completion, Virtually and in Real Time
At the final inspection stage, timing is everything. Valligent’s 1004D Virtual Completion Certificate, whether on-demand or scheduled, replaces waiting days for an appraiser to show up in person with a streamlined, tech-enabled process.
A licensed appraiser guides someone on-site through the inspection using a secure live video streaming connection. The appraiser receives real-time images and data, then completes the inspection remotely. The process is not only faster, often being able to be done within hours, but also more cost-effective and fully compliant. It keeps funds moving and projects on schedule.
2. Smarter Decisions Before Construction Begins
Risk doesn’t just exist during the build; it starts at the very beginning. Lenders need a clear understanding of the project’s value and future potential. Veros provides two solutions that help with that:
VeroVALUE AVM offers fast, accurate valuations on land and pre-construction projects. This gives lenders a valuable gauge of baseline value before any work begins.
VeroFORECAST delivers forward-looking insights into local home price trends and market demand. VeroFORECAST can help lenders evaluate longer-term risk and return, using predictive analytics data to support smarter lending.
Partnering for Growth in a Shifting Market
As traditional banks grow more cautious, private lenders have the chance to step into a larger role. With the right technology in place, lenders can move faster, reduce uncertainty, and stand out in a competitive market.
By working with Valligent and Veros, lenders can:
- Reduce risk with deeper insight into local markets and project progress
- Improve efficiency by eliminating delays and relying on trusted data
- Deliver a better borrower experience with faster approvals and fewer holdups
If your team is looking to grow new construction lending this year, let’s talk. Valligent and Veros have the solutions to help you lend smarter and move with confidence.
