WHAT’S A “NORMAL” LENGTH FOR CONSTRUCTION LOANS THESE DAYS?
Honestly, I thought I’d planned for every possible delay during my last build, but the weather and county inspection schedules had other ideas. My loan was set for 12 months, but I still ended up needing an extension. If you’re budgeting time, I’d tack on a few extra months just in case—unexpected stuff always pops up, especially with inspections and lender paperwork. It’s like they want a paper trail for every nail you hammer in...
WHAT’S A “NORMAL” LENGTH FOR CONSTRUCTION LOANS THESE DAYS?
I ran into the same issue—my lender pushed for a 12-month term, but between permit delays and a couple of supply chain hiccups, we went over by almost three months. If I do this again, I’m asking for at least 15 months upfront. The extension fees aren’t worth the stress.
I hear you on the extension fees—they can add up fast. I’ve noticed even well-organized projects rarely finish in just 12 months these days, especially with all the backorders on fixtures and custom finishes. Have you found lenders willing to budge on that, or are they all sticking to their standard terms?
I’ve noticed even well-organized projects rarely finish in just 12 months these days
Honestly, I’m not sure it’s always the timeline that’s the problem. Sometimes it’s just poor planning or communication with subs. I’ve seen a few folks finish in under a year when they really stay on top of things and avoid too many custom changes. Extension fees are rough, but I still think some delays could be avoided.
I’ve seen a few folks finish in under a year when they really stay on top of things and avoid too many custom changes.
That’s true, but I think there’s a lot more unpredictability these days—weather, supply chain hiccups, permitting delays. Even with tight management, I’m finding 12 months is almost optimistic for most builds now, especially if you’re juggling multiple subs. Curious—are lenders in your area still pushing 12-month loans, or are you seeing more 18-month terms as the new baseline?
