WHAT’S A “NORMAL” LENGTH FOR CONSTRUCTION LOANS THESE DAYS?
That monthly progress check is pretty standard from what I’ve seen lately—most banks want to see their money’s actually going into the build, not just sitting there. I’ve had a few clients get tripped up by weather delays or supply chain stuff and suddenly 12 months feels tight. Sometimes we can push for a 15- or even 18-month term, but the bank usually tacks on extra fees or higher rates. Do you think banks are getting stricter about timelines these days, or is it just because builds are taking longer with all the labor shortages?
Sometimes we can push for a 15- or even 18-month term, but the bank usually tacks on extra fees or higher rates.
I ran into this exact thing last year. We started with a 12-month loan, thinking it’d be plenty, but between the framing crew getting delayed and a couple of material backorders, we had to ask for an extension. The bank was willing, but yeah—extra fees and a slightly higher rate. If I could do it over, I’d build in more buffer time from the start. It’s not just banks being strict; builds just take longer now with all the moving parts. If you’re just starting, ask about extension terms up front so there are no surprises.
Totally agree—timelines are so unpredictable now. I’ve seen projects where even the cabinetry or tile gets held up for months, and that throws off everything else. Honestly, I’d rather have a longer loan term and finish early than stress about racing the clock. Banks can be rigid, but it’s the domino effect of delays that really gets you.
WHAT’S A “NORMAL” LENGTH FOR CONSTRUCTION LOANS THESE DAYS?
That domino effect is real—one delay and suddenly the whole schedule’s out the window. I’ve seen even the most organized projects get derailed by something as simple as a backordered window or a missing permit. It’s not just cabinetry or tile, either; lately, specialty materials for energy-efficient builds are taking even longer to arrive.
I get why banks want to keep things tight, but honestly, a bit of flexibility goes a long way. Rushing to meet an arbitrary deadline can lead to mistakes or cutting corners, which isn’t great for anyone—especially if you’re aiming for green certifications or higher performance standards. I’d rather pad the timeline and finish early than scramble at the end.
One thing I’ve noticed: some lenders are starting to recognize these industry-wide delays and will work with you if you communicate early. Not always, but it’s worth asking. Still, I wish there was more consistency across the board... every project seems to be a negotiation now.
WHAT’S A “NORMAL” LENGTH FOR CONSTRUCTION LOANS THESE DAYS?
Rushing to meet an arbitrary deadline can lead to mistakes or cutting corners, which isn’t great for anyone—especially if you’re aiming for green certifications or higher performance standards.
That’s the part that always gets me. It’s like, we’re being encouraged (sometimes even required) to build to higher standards, but then the loan timelines don’t really reflect the extra time those standards demand. I’ve had projects where just getting the right insulation or triple-glazed windows added months, and that’s before you factor in the extra inspections for LEED or Passive House.
I’ve noticed a lot of lenders still default to 12 months for construction loans, maybe 18 if you push. But honestly, with all the supply chain weirdness and permitting delays lately, that feels optimistic—especially for anything beyond a basic build. I’ve had better luck when I can show a detailed schedule and explain why certain green materials or systems take longer. Sometimes they’ll give you a little more breathing room, but it’s never guaranteed.
The inconsistency is frustrating. One bank will be super flexible, another acts like you’re asking for the moon if you want more than a year. It’s almost like you have to become an expert negotiator just to get a realistic timeline. And yeah, communication helps, but it’d be nice if there was some industry standard that actually matched what’s happening on the ground.
I get why banks want to minimize risk, but it seems counterproductive if it means people are forced to rush and potentially compromise on quality—or worse, on safety or sustainability goals. I’d rather see lenders recognize that “normal” is shifting and adjust their expectations accordingly. Until then, I guess we just keep padding our schedules and hoping for the best...
