WHAT’S A “NORMAL” LENGTH FOR CONSTRUCTION LOANS THESE DAYS?
I get where you’re coming from, but I’d actually argue that 10-12 months is cutting it close for most projects, even the straightforward ones. Lenders are padding timelines because supply chain hiccups and permit delays are still all over the place. I’ve had projects where inspections alone added a month I didn’t plan for. Curious if you’ve factored in weather delays or utility hookups? Those always seem to sneak up on me, no matter how tight my schedule looks on paper. Sometimes paying for a couple extra months of interest is just cheaper than scrambling at the end...
WHAT’S A “NORMAL” LENGTH FOR CONSTRUCTION LOANS THESE DAYS?
I hear you on the delays—my last build, I budgeted for 12 months and still ended up needing an extension. The weather was a nightmare, and getting the power company to show up took forever. But I always wonder if lenders are just being overly cautious now, or if it’s really that unpredictable. Is it worth paying extra interest just in case, or am I just letting them pad their profits? I get nervous about overpaying for “just in case” time, but maybe that’s just the cost of not stressing at the end...
WHAT’S A “NORMAL” LENGTH FOR CONSTRUCTION LOANS THESE DAYS?
- You’re not alone—delays are just part of the game lately. I’ve seen 12 months as the “standard” on paper, but honestly, most projects I’m on end up closer to 15-18 months, especially with all the supply chain weirdness and utility holdups.
- Lenders do seem to play it safe, but I get why. Weather, permits, inspections... it’s a roll of the dice every time. I’ve had a framing crew disappear for two weeks because another job was behind schedule. Stuff just happens.
- Paying for extra time up front feels like throwing money away, but scrambling for an extension at the end is way more stressful (and sometimes pricier if rates jump). I usually tell folks to pad their timeline a bit—think of it as insurance against headaches.
- If you finish early, some lenders will let you convert to a permanent loan right away, so you’re not stuck paying construction rates longer than needed. Worth asking about that up front.
- At the end of the day, I’d rather have a little buffer than be sweating bullets when the clock runs out... but yeah, it stings to pay for time you don’t use. Just seems like that’s the new normal these days.
I’ve had lenders push for 12 months, but I can’t remember the last time a build actually wrapped up that fast. Even with the best crews, there’s always some random hiccup—last year, we lost three weeks waiting on windows. I’d rather pay for a couple extra months than get stuck begging for an extension when the finish line’s in sight. Just seems safer, even if it feels like overkill at first.
Title: What’s a “normal” length for construction loans these days?
I’ve seen the same thing—12 months always sounds doable on paper, but in reality, there’s always something unexpected. On my last build, the HVAC install got delayed because one part was on backorder, and that pushed everything else out of sync. I guess I wonder if lenders are just being optimistic, or if they’re banking on most borrowers needing extensions anyway. I’d rather have a little breathing room than scramble at the end.
