WHAT’S A “NORMAL” LENGTH FOR CONSTRUCTION LOANS THESE DAYS?
That’s pretty much been my experience too—everyone told me 12 months was the “norm,” but honestly, I don’t know how anyone’s finishing a custom build that fast right now. We’re about halfway through our project and already hit a couple delays—permits took way longer than expected, and then our flooring got backordered out of nowhere. I ended up negotiating for a 15-month loan just to have some breathing room, but even that feels tight some days.
I’ve wondered if lenders are really as flexible as they say, though. Has anyone actually had an easy time getting extensions? I keep hearing horror stories about interest rates jumping if you go past your original term. Makes me wish I’d pushed harder for 18 months from the start. Is it just me, or does it feel like “normal” is kind of a moving target these days?
WHAT’S A “NORMAL” LENGTH FOR CONSTRUCTION LOANS THESE DAYS?
Makes me wish I’d pushed harder for 18 months from the start. Is it just me, or does it feel like “normal” is kind of a moving target these days?
You nailed it with “moving target.” Honestly, I remember when 12 months was more than enough—back in 2017, I finished a mid-sized build in 10 months and thought I was dragging my feet. These days? Not a chance. My last project, I went for 18 months up front and still had to ask for a 3-month extension because the city sat on our inspection paperwork for weeks.
Lenders talk about flexibility, but in practice, it really depends on the bank and your relationship manager. Some will work with you if you’re proactive, but I’ve seen others bump that rate up the minute you go over. Had one buddy get hit with a half-point hike just for needing an extra month.
Permits, supply chain issues, weather...all of it’s slower now. If I’m being honest, I don’t even consider 12 months realistic anymore unless you’re building spec homes on a tight schedule. Custom or anything semi-complex? I wouldn’t touch less than 15-18 months.
WHAT’S A “NORMAL” LENGTH FOR CONSTRUCTION LOANS THESE DAYS?
I’ve been seeing the same thing—timelines just keep stretching. I’m working on a reno right now and even getting cabinets delivered took way longer than I expected. I used to think 12 months was overkill, but now it feels like you need a buffer just for all the little delays nobody plans for. Curious if anyone’s found lenders who are actually understanding about design changes mid-build? I swear, every time we tweak something, it adds weeks...
I used to think 12 months was overkill, but now it feels like you need a buffer just for all the little delays nobody plans for.
Funny thing, I’ve actually had the opposite experience on my last build. We locked in an 11-month loan, and even with a couple of design tweaks, we wrapped up early. Maybe it’s just luck with contractors or picking finishes that are in stock? I do think sometimes the more changes you make mid-stream, the more you’re asking for trouble with timelines. Not saying don’t tweak things, but I’ve learned to pick my battles—sometimes “good enough” really is good enough.
I do think sometimes the more changes you make mid-stream, the more you’re asking for trouble with timelines.
That hits home. I had a client last year who wanted to swap out tile for hardwood halfway through—seemed simple, but it snowballed into delays waiting for materials and reworking subflooring. I always remind folks: if you can live with your original picks, stick with them. The “perfect” shade of white isn’t worth another month of dust and noise... trust me.
