WHAT’S A “NORMAL” LENGTH FOR CONSTRUCTION LOANS THESE DAYS?
You nailed it with the “expert negotiator” bit. I had to fight tooth and nail to get 15 months on my last build, and that was just a basic house—nothing fancy, no certifications. The bank acted like I was asking for a five-year extension or something. Meanwhile, my neighbor’s project got stuck waiting for windows for almost four months. It’s wild how out of touch some lenders are with what’s actually happening on job sites these days. I just assume everything will take longer now and try to build in as much buffer as I can... but it’s always a gamble.
WHAT’S A “NORMAL” LENGTH FOR CONSTRUCTION LOANS THESE DAYS?
The bank acted like I was asking for a five-year extension or something.
That’s been my experience too. I’ve noticed lenders are still stuck on the old 12-month standard, even though supply chain delays and labor shortages have made that timeline pretty unrealistic. On my last multi-lot project, I had to present a detailed construction schedule and contingency plan just to get 18 months approved. Even then, they wanted monthly progress reports and threatened penalties if we went over.
It’s odd—lenders seem to think delays are always the builder’s fault, when in reality, things like window lead times or utility hookups are completely out of our hands. I’ve started including a 20% time buffer in all my proposals, but it still feels like a roll of the dice every time. Maybe some banks are more flexible in other regions, but around here, you really have to justify every extra month.
WHAT’S A “NORMAL” LENGTH FOR CONSTRUCTION LOANS THESE DAYS?
Twelve months always sounded nice on paper, but I’ve never seen a project actually finish on time unless the stars align. Last year, my contractor swore up and down we’d be done in 10 months—took 16, and that was with me calling in every favor I had. The bank acted like I was dragging my feet on purpose.
I get that lenders want their money back, but you’d think by now they’d realize delays are just part of the deal. Between waiting on permits and stuff getting stuck at the port, I don’t know how anyone hits those old-school deadlines. I always budget extra for interest just in case, but it’d be nice not to have to fight for a few more months. Maybe I just need to find a bank that’s actually built something before...
I get that lenders want their money back, but you’d think by now they’d realize delays are just part of the deal.
You’re not alone. I’ve never had a project wrap in 12 months either—permits and supply chain issues just eat up time. Honestly, building green adds even more unpredictability. Banks really need to get with the times...
Banks really need to get with the times...
Yeah, I hear you. Lenders still act like every project is textbook, but reality’s messier. I’ve had “18-month” loans drag out to 24, and that’s without any wild surprises. Green builds are a whole other beast—inspectors seem to find new things to nitpick every time. It’s frustrating, but you’re not off base thinking timelines just aren’t what they used to be.