Title: What’s A “Normal” Length For Construction Loans These Days?
We’re about halfway through our first custom build, and I can’t imagine how anyone wraps up in 12 months unless it’s a cookie-cutter plan with zero surprises. Our lender pushed for the standard year, but after talking to neighbors who built recently, we negotiated for 16 months. Even that’s starting to feel tight—permits took forever, and then framing got delayed because of a lumber shortage.
I get why lenders want shorter terms, but honestly, it just adds stress. Extensions aren’t always straightforward either—ours comes with extra fees and more paperwork. If I had to do it again, I’d push for 18 months minimum, even if the rate’s a bit higher. It’s not pessimism, just being realistic about all the stuff you can’t control.
From what I’ve seen, lenders are still pretty stuck on 12 months unless you really press them. Maybe that’ll change if enough people keep running into delays...
I’ve seen 12 months thrown around as “standard,” but honestly, that’s rarely enough for anything custom these days. I had a client last year who needed 15 months, and even then we were scrambling at the end because of inspection delays. Lenders seem slow to catch up with reality.
Yeah, 12 months feels pretty optimistic these days, especially if you’re doing anything custom or running into permit snags. I’m building my own place and between supply chain hiccups and waiting on inspectors, it’s been more like 16 months and counting. Wish lenders would get with the program—timelines just aren’t what they used to be.
I hear you—12 months is pretty rare now, especially for anything even slightly outside the box. I’ve seen projects stretch to 18 months or more, and that’s with a solid GC and no major disasters. Lenders still seem stuck on old timelines, which doesn’t help anyone. Out of curiosity, has anyone had luck negotiating longer terms up front, or are most banks still rigid about the standard year? I’m wondering if regional differences play a role too...
WHAT’S A “NORMAL” LENGTH FOR CONSTRUCTION LOANS THESE DAYS?
Twelve months is a joke for anything custom or high-end, at least in my experience. I’ve built two homes in the last five years—both took closer to 20 months, and that was with a GC who actually answered his phone. The banks I dealt with (big national names, not local credit unions) were stubborn about the 12-month term, but after some back-and-forth and showing them detailed schedules, I managed to get an 18-month loan on the second project. Still felt tight.
I honestly think lenders are out of touch with what it takes to build these days. Permitting alone can eat up three months if you’re unlucky or dealing with a picky HOA. Regional differences are real too—my buddy in Texas got a 24-month term without much fuss, but here in California, it’s like pulling teeth. Maybe it’s just the market being so hot that banks feel they can dictate terms, but it’s not realistic for anyone building something unique or high-spec.
If you’re not pushing back on those timelines up front, you’re setting yourself up for stress later.
