WHAT’S A “NORMAL” LENGTH FOR CONSTRUCTION LOANS THESE DAYS?
That lines up with what I’ve seen—most of my deals lately have been 12 months, but they always seem to run long. Had one project where we hit a snag with the city on a utility easement and ended up needing almost 20 months before we could wrap. Lenders were cool since we’d built in some buffer, but man, those delays eat up your contingency fast. Paper trail definitely helps when you’re trying to justify an extension.
Funny, I’ve noticed the same thing—12 months is the standard on paper, but I can’t remember the last time a project actually finished on schedule. Design changes mid-build always seem to push things out, especially when clients get inspired late in the game. I’ve learned to pad my timelines and keep every email and drawing revision handy. City approvals are their own beast… you just never know how long they’ll take.
Totally get where you’re coming from. On paper, 12 months sounds tidy, but in reality? I can count on one hand the number of builds that actually wrapped up in that window. Even when the plans seem “final,” there’s always something—maybe it’s a last-minute kitchen tweak, or suddenly the client wants to move a wall after seeing framing go up. That stuff adds weeks, sometimes months.
City approvals are a wild card too. I’ve had permits come through in two weeks and others drag out for three months with no rhyme or reason. It’s gotten to the point where I just assume there’ll be at least one surprise delay somewhere along the line.
I usually push for 15-18 month loans now, just to give everyone some breathing room. The banks don’t always love it, but it beats scrambling for an extension at the eleventh hour. And yeah, keeping every single revision and email is a lifesaver—nothing like digging up that old PDF when someone swears they never asked for a bigger window...
WHAT’S A “NORMAL” LENGTH FOR CONSTRUCTION LOANS THESE DAYS?
I’m right in the middle of my first custom build, and I can’t believe how much the timeline has shifted compared to what we were told at the start. The builder said 10-12 months, but between permit delays, weather, and a couple of changes we made after seeing things in person, we’re already looking at 15 months minimum. I wish I’d known to push for a longer loan term upfront—now I’m sweating the idea of having to ask for an extension.
The city approval process is honestly the biggest wildcard. We waited almost two months just for a minor variance, and nobody could give us a straight answer on when it would be done. It’s frustrating, but I guess it’s just part of the process. I’ve started keeping every single email and document too, just in case there’s any confusion later. Learned that lesson the hard way when our window order got mixed up and everyone was pointing fingers.
If I had to do it again, I’d definitely go for a 16-18 month loan from the start, even if the bank pushes back. The peace of mind is worth it, and you can always pay it off early if things actually go smoothly (which... let’s be real, probably won’t happen). It’s wild how much can change once you’re actually in the thick of it—plans on paper are one thing, but reality is a whole different animal.
Anyway, for anyone else just starting out, don’t get too attached to that 12-month number. Build in some buffer time wherever you can. It’ll save you a lot of stress down the line.
If I had to do it again, I’d definitely go for a 16-18 month loan from the start, even if the bank pushes back.
That’s interesting—lenders I’ve worked with lately seem to be more open to 18-month terms, but they still act like 12 months is the “standard.” I wonder if that’s just inertia or if there’s some regulatory reason behind it. Have you noticed whether your builder or lender factored in any local permitting timelines when setting expectations? In my experience, those city delays are almost never built into the original schedule, which seems like a big oversight.