What’s a “normal” length for construction loans these days?

Topic Title: What’s a “Normal” Length for Construction Loans These Days?

Honestly, I’ve started treating those 12-month terms as more of a suggestion than a rule.

That’s not far off. I’ve had “12-month” builds where just getting utilities sorted ate up half that time. Sometimes I wonder if lenders have ever actually built anything themselves. Pushing for 18 months upfront isn’t overkill anymore - just realistic.

I’ve seen 12 months turn into 16 or more, even on projects where everyone’s supposedly “on schedule.” Weather, permits, supply chain - take your pick. These days, if you’re not asking for at least 18 months, you’re setting yourself up for headaches. Lenders really need to catch up with reality.

These days, if you’re not asking for at least 18 months, you’re setting yourself up for headaches. Lenders really need to catch up with reality.

You’re not kidding about those headaches. I used to think 12 months was generous, but after living through a “quick” reno that stretched into the next calendar year, I’m convinced there’s no such thing as too much buffer. Permits alone can eat up weeks, and then something random - like a missing faucet or a rainstorm - throws everything off.

I do think some lenders are starting to get it, but there’s still this old-school optimism baked into loan terms. Maybe they’ve never waited three weeks for drywall to show up? At this point, I’d rather pad the timeline and finish early than scramble for extensions. Learned that the hard way... twice.

I get where you’re coming from, but I’m not sure padding the timeline is always the answer.

At this point, I’d rather pad the timeline and finish early than scramble for extensions.

That sounds great in theory, but doesn’t a longer loan term usually mean higher costs? I’ve seen folks end up paying more in interest just because they were too cautious. Maybe the real problem is contractors overpromising or cities dragging their feet on permits, not the loan terms themselves. I’d rather push for better project management than just assume everything will go wrong.

I hear you on the interest costs - longer loans can definitely add up. But after getting burned once when a city inspector vanished for weeks, I’d rather have a buffer. Sometimes it’s not even the contractor’s fault... just the reality of red tape.