Small home builders have noticed that lenders are more willing to make construction loans as banks clear their portfolios of bad credits left over from the housing bust.

It wasn't long ago that bankers wanted a signed contract by the home buyer before approving a construction loan. Now banks are providing construction financing for speculative houses where a buyer has not been lined up, according to David Crowe, the chief economist at the National Association of Home Builders.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.