Total loan approvals at Home Building Finance Ireland (HBFI) grew to €1.44bn by the end of June.
That represented a 15% increase on the total at the end of last year.
HBFI was set up in 2018 by the Government to fund the delivery of new homes, with initial funding of €730m made available from the Ireland Strategic Investment Fund.
It said demand for funding rebounded significantly between January and June, with volumes of new lending twice what they were over the same period last year.
In total the organisation had approved funding for 6,357 new homes in 117 developments across 22 counties by the end of June.
Almost 2,000 of those have been sold, with 1,688 contracted for sale or sale agreed.
"We are making strong progress in supporting increased housing supply for owner-occupiers, renters and people who need social or affordable housing," said CEO, Dara Deering.
"Against a challenging backdrop of higher interest rates and inflation in construction materials and labour, our support for housebuilding firms gives them access to competitive funding options that allow them to plan with certainty and to build the homes that so many people need."
"This support is reflected in the strong demand we have seen for our funding in the first half of this year."
€979m in drawdowns have been made so far for 66 developments, where 4,258 homes are being constructed.
Individual loan facilities range from €1m to €108m, with an average size of €12m.
HBFI said it is introducing a new product next month to address an emerging gap in the funding market which will be available to larger homebuilding firms that may encounter issues accessing funding.
"I am pleased to see HBFI taking a forward looking approach in adjusting their product offerings to address emerging market needs and I commend them on their swift response," said Minister for Finance, Michael McGrath.
