WHAT’S A “NORMAL” LENGTH FOR CONSTRUCTION LOANS THESE DAYS?
- Totally get what you mean about the stress. I had to chase down my lender for weeks just to get a simple question answered about the draw schedule.
- The extensions do feel like a cash grab, but I guess they know we’re stuck if things run long.
- It’s wild how the bank can hold up the whole project over paperwork. You’d think they’d want things moving too.
- At this point, I’m tracking bank emails as closely as invoices... never thought that would happen.
- Hang in there—feels like half the battle is just keeping everyone on the same page.
WHAT’S A “NORMAL” LENGTH FOR CONSTRUCTION LOANS THESE DAYS?
The extensions do feel like a cash grab, but I guess they know we’re stuck if things run long.
That’s honestly been my experience too. The standard I keep seeing is 12 months, but it’s rare for a custom project to actually wrap up that quickly—especially with permitting delays or supply chain hiccups. Banks seem to set these timelines based on ideal conditions, which just isn’t reality most of the time.
I’m curious if anyone’s had luck negotiating more flexible terms upfront? I’ve seen some lenders offer 18-month loans, but then the rates or fees aren’t as favorable. It makes me wonder if it’s better to push for a longer initial term, or just accept the risk of an extension down the line. Has anyone managed to avoid those extension fees altogether, or is that just wishful thinking?
Banks seem to set these timelines based on ideal conditions, which just isn’t reality most of the time.
You nailed it. I’ve rarely seen a custom build hit that 12-month mark either—permits alone can eat up months. I usually push for a longer term upfront, even if the rate’s a bit higher. In my experience, those “extension” months are pricier and way more stressful than just locking in extra time from the start. If you can get the lender to budge on fees or flexibility, it’s worth it for peace of mind.
Funny, I’ve had builders swear up and down they’d be done in 9 months, but between weather delays and a surprise “your trusses are delayed another 6 weeks” email, it’s never happened. I usually budget for 16-18 months now, just to keep my sanity. Honestly, paying a bit more upfront beats scrambling for an extension when you’re already stressed about the punch list dragging on. Sometimes feels like banks are living in a different universe with those timelines...
WHAT’S A “NORMAL” LENGTH FOR CONSTRUCTION LOANS THESE DAYS?
I’m with you—those 9 month estimates always seem like wishful thinking. Has anyone actually had a build finish on time? I’ve always wondered if banks ever talk to real builders or just pick numbers out of a hat. Do they ever factor in things like supply chain chaos or is that just our problem?
