Yeah, that leftover funds thing drives a lot of folks nuts. I’ve seen clients get excited about “extras” at the end, only to hit that same wall. On timing, 12 months is pretty much the new normal from what I’m seeing too, unless you’re working with a really unique lender. Used to be way more wiggle room—now it’s all just tighter. Makes planning a bit of a headache when weather or supply hiccups hit.
WHAT’S A “NORMAL” LENGTH FOR CONSTRUCTION LOANS THESE DAYS?
- Twelve months seems to be the magic number now, but honestly, I remember when you could squeeze out 18 months without anyone blinking. Now it’s like, “Here’s your year—don’t mess it up.”
- The leftover funds thing is wild. We thought we’d use ours for a fancy deck at the end, but nope—bank said no dice. Apparently, “leftover” doesn’t mean “free for all.” Who knew?
- Weather delays are brutal. We lost a whole month to rain last spring and the lender was not sympathetic. I swear, they act like you can just build in a bubble.
- Anyone else notice lenders getting pickier about what counts as a legit delay? Our inspector was late and that didn’t count either... go figure.
- I get why they’re tightening things up, but it does make planning feel like a game of Tetris—one wrong move and you’re out of time.
Curious if anyone’s actually managed to finish early lately? Or is that just a construction myth at this point...
WHAT’S A “NORMAL” LENGTH FOR CONSTRUCTION LOANS THESE DAYS?
Twelve months feels like the new standard, but I’m with you—18 months used to be pretty common, especially for anything more complex than a basic build. Lenders seem way less flexible now, and honestly, it’s tough to blame them with how many projects have gone sideways lately. Still, it’s frustrating when delays outside your control (like weather or city inspections) don’t count for anything.
Anyone seeing lenders offer extensions without massive fees, or is that wishful thinking? Last time I tried, they acted like I was asking for a miracle...
WHAT’S A “NORMAL” LENGTH FOR CONSTRUCTION LOANS THESE DAYS?
Twelve months does seem to be the new “default,” but I’m not convinced it works for most builds, especially if you’re not a big developer with a crew on standby. My last lender wouldn’t budge on the 12-month term either, and when weather delayed framing for six weeks, they basically shrugged. I did get an extension, but the fees were brutal—felt like a penalty for things totally out of my hands. Has anyone actually managed to negotiate softer terms upfront? Or is that just not happening anymore?
WHAT’S A “NORMAL” LENGTH FOR CONSTRUCTION LOANS THESE DAYS?
- Twelve months is what I keep seeing too, but honestly, it’s not a one-size-fits-all situation. Smaller projects or remodels, maybe. But new builds? Not always realistic.
- Lenders seem to be getting stricter, which is frustrating. I’ve had clients get quoted 9 months—insane for anything custom or if you’re juggling subs who aren’t always available on your timeline.
- I’ve actually seen a few people negotiate 15 or even 18 months, but it usually comes with higher rates or extra fees baked in. Not exactly a win.
- The weather delays are brutal. Had a project last spring where rain set us back nearly two months. Lender wouldn’t budge on the term either—felt like they just expect you to eat the cost.
- One thing that sometimes helps: bring in a detailed project schedule and show them your buffer time for delays. It’s not a guarantee, but I’ve had slightly better luck when we look organized (even if it’s just for show).
- Honestly, I think the market’s shifted since COVID. Lenders are more risk-averse and less flexible unless you’re bringing serious volume.
- If you’re stuck with 12 months, try to build in as much contingency as possible on your own end—budget, timeline, everything. Otherwise those extension fees will eat you alive.
Not saying it’s fair, but right now it feels like the banks are holding all the cards... unless you’ve got some serious leverage or connections.
