Title: What’s a “Normal” Length for Construction Loans These Days?
I haven’t seen a project wrap up under 12 months in ages—unless it’s something really small or super straightforward. The delays just keep stacking up, especially with all the new permitting hoops and supply chain hiccups. On the lender side, I’ve noticed some are sneaking in extra admin fees for extensions rather than bumping up the rate itself. Has anyone actually managed to negotiate more flexible terms upfront, or is it always a battle?
- Totally agree—12 months is pretty much the bare minimum now, unless you’re talking about a tiny reno or something prefab.
- Permitting is a nightmare lately. Even just getting a simple interior permit approved can drag on for months, let alone ground-up builds.
- I’ve seen more lenders tacking on “processing” or “admin” fees for extensions, and honestly, it feels like a sneaky way to pad their margins without raising rates.
- Tried negotiating more flexible terms upfront a couple times. Sometimes you get a little wiggle room if you’re working with a lender you’ve got history with, but most of the time it’s a hard no.
- One thing I’ve noticed: if you can show a really detailed project schedule (with built-in buffer for delays), lenders seem a bit more open to longer terms from the start. Not always, but it helps.
- Honestly, I just assume we’ll need an extension and budget for it. It’s annoying, but it beats scrambling at the last minute.
- Anyone else seeing more lenders requiring regular progress updates or site visits? That’s been a new headache for me this year...
Honestly, I just assume we’ll need an extension and budget for it. It’s annoying, but it beats scrambling at the last minute.
Same here—learned that lesson the hard way after my kitchen addition ran over by three months thanks to permit delays and a backordered window. Also getting hit with those admin fees lately... feels like they’re inventing new ways to charge us. Site visits are definitely up too; my lender wanted photos every two weeks this time, which was a first for me.
Site visits are definitely up too; my lender wanted photos every two weeks this time, which was a first for me.
That’s becoming pretty standard—my last project had biweekly inspections too. Most lenders I’ve worked with now default to 12-month terms, but I always push for 18 just in case. Extensions aren’t cheap, and those admin fees add up fast.
I’ve noticed the same thing with the site visits—my lender wanted a ton of progress photos, and even asked for timestamps. I get why, but it felt a bit over the top at first. About the loan terms, mine defaulted to 12 months too, but I was told that’s “industry standard” now. I tried to negotiate for longer, but they were pretty firm unless I wanted to pay a higher rate.
Curious if anyone’s actually finished a custom build in under a year lately? Weather delays and permit holdups pushed my timeline way past what I expected. I’m starting to think 18 months is more realistic, especially if you’re not doing a cookie-cutter plan. Those extension fees are no joke either... I got hit with one and it was way more than I budgeted for. Wondering if lenders are just being extra cautious these days or if this is the new normal.