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

WHAT’S A “NORMAL” LENGTH FOR CONSTRUCTION LOANS THESE DAYS?

I hear you on not wanting to pad the schedule too much, but honestly, I’ve been burned a couple times by being too optimistic. Last year, we had a project where the city sat on our permit for almost three months - no amount of calling or sweet-talking sped things up. That threw off everything, and the lender wasn’t exactly thrilled about extending, even though it was out of our hands. Maybe it’s just the bigger banks around here, but they seem to get nervous if you’re not hitting those original dates, even when you’re upfront.

I do agree that smaller lenders can be more flexible. Had a local bank once that actually called me to check in and see if I needed more time - felt like I was in the Twilight Zone compared to the usual red tape. But with the bigger guys, I’d rather have a little cushion built in than risk scrambling for an extension later. It’s a balancing act for sure... sometimes feels like you can’t win either way.

WHAT’S A “NORMAL” LENGTH FOR CONSTRUCTION LOANS THESE DAYS?

In my experience, 12 months is pretty standard for most construction loans, but I’ve seen some stretch to 18 months if you ask up front. Anything shorter than a year feels risky unless you’re doing something really simple. Permitting delays are brutal - had a similar situation where the city just sat on my plans and there was nothing I could do. The big banks definitely get twitchy if you’re not on schedule, and getting an extension can turn into a paperwork nightmare.

I’d rather build in extra time from the start, even if it means paying a bit more in fees or interest. It’s way less stressful than begging for an extension later. Smaller local banks are usually more understanding, but they don’t always have the best rates or terms. It’s a tradeoff. If you’re dealing with a bigger lender, I’d pad your timeline by at least a couple months just to be safe. Better to finish early than get stuck in limbo because of something out of your control.

Permitting delays are brutal - had a similar situation where the city just sat on my plans and there was nothing I could do.

Man, I’ve been there. Had a project where we budgeted 12 months, but the city took nearly four just to approve our foundation plans. Ended up needing a 6-month extension, which turned into a paperwork circus with the lender. In hindsight, I’d rather overestimate and finish early than get squeezed at the end. It’s wild how much of this stuff is out of your hands... building in that buffer is just smart.

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

Yeah, those delays can really throw a wrench in things. Had a custom build last year where we padded the schedule by three months, thinking we were being cautious. Still got blindsided - city wanted extra soil reports, then the inspector went on vacation right when we needed sign-off. The loan was set for 14 months, but we barely squeaked by. I always wonder if lenders even realize how unpredictable the permitting side is... sometimes it feels like they’re living in a different world.

Honestly, I hear you on the unpredictability. It’s wild how you can plan for every obvious delay and still get caught by something like a surprise soil report or someone’s vacation. I always tell folks: build in as much buffer as you can, then expect you’ll still need to hustle at the end. Lenders really don’t see the day-to-day chaos - permits, weather, inspectors - it’s like trying to herd cats sometimes. But hey, you made it through, and that’s what counts. Next time, maybe push for 16-18 months if you can swing it... gives a little more breathing room.