Homes England has committed £70m to fund, 8500 new homes in Northamptonshire.
The investment will help create 5,500 homes in Kettering and 3,000 in the initial phase of a new site in Wellingborough.
The schemes, which will be delivered by Long Harbour, Midtown Capital and Buccleuch Property, have a combined value of £2.5bn over their lifetime and are estimated to create 3,000 jobs in the area as well as schools, leisure and commercial space.
Homes England has agreed the loan as part of its £4.5bn Home Building Fund.
Kit Malthouse, Minister of State for House, said: “I am delighted to hear scholars are already in the ground as builders set about delivering 8,500 much-needed homes so more people can realise their home-owning dream.”
Sir Edward Lister, chairman of Homes England, added: “Providing infrastructure upfront is key to unlocking significant housing growth and Homes England’s investment in Kettering and Wellingborough will enable two major housing projects to be delivered after many years of delay.”