Title: What’s a “Normal” Length for Construction Loans These Days?
Back when we built our place, the loan term was 12 months, and I remember thinking that sounded generous. Turns out, it wasn’t—between weather delays and waiting for the city inspector (who seemed to be on vacation half the year), we barely squeaked by. I tried to get an extension, but the lender just tacked on extra fees. In hindsight, I wish I’d pushed harder for a longer term upfront, but they weren’t exactly flexible. Maybe things have changed, but I wouldn’t count on lenders bending over backwards for custom work timelines.
Funny you mention the inspector—ours seemed to disappear right when we needed sign-off, too. We had a 12-month loan as well, and it felt like a race against the clock. I’ve heard some lenders are offering 18 months now, but they still love their fees if you go over. Honestly, unless you’re building a cookie-cutter house, I’d always ask for more time than you think you’ll need. Stuff just happens—rain, backorders, or that one subcontractor who’s always “on his way.”
What’s a “normal” length for construction loans these days?
Twelve months always feels tight, especially if you’re not doing a standard plan. I’m curious—has anyone actually managed to finish a custom build in under a year without running into delays? Or is 18 months becoming the new baseline?
Honestly, I think 12 months can still work if you’re really organized and have a builder who’s on top of things. We finished a semi-custom place in just under a year, but it took a lot of planning and, honestly, a bit of luck with weather and permits. I get why 18 months is appealing, though—less stress about going over. But for folks on a tight budget, stretching the loan period means paying more interest, which adds up fast. Sometimes it’s worth pushing for that shorter timeline if you can swing it.
WHAT’S A “NORMAL” LENGTH FOR CONSTRUCTION LOANS THESE DAYS?
I hear you on the 12 months—if you’ve got a unicorn builder and the city isn’t dragging its feet, it’s doable. But man, I’ve seen even the best-laid plans get derailed by a random backorder or a surprise inspection. I kinda lean toward the 18 months just for the breathing room, but yeah, the extra interest stings. Guess it’s a tradeoff between stress and cash... and maybe how much you trust your builder to actually answer your texts.
