WHAT’S A “NORMAL” LENGTH FOR CONSTRUCTION LOANS THESE DAYS?
I hear you on the stress—those extension fees can sneak up fast. My lender started at 12 months too, but I had to make a case for 15. Even then, we barely made it. I’ve never wrapped up a project under the original term either... Weather delays alone seem to eat up weeks. Maybe banks just want us on that extension hook?
WHAT’S A “NORMAL” LENGTH FOR CONSTRUCTION LOANS THESE DAYS?
That extension fee thing is wild, right? I swear, it’s like the banks know there’s no way you’ll hit that original deadline unless you’re building in a bubble. I’ve seen 12 months as the “standard” too, but honestly, I don’t know anyone who’s actually finished a project in that window—especially if you’re trying to do anything even a little outside the box. Green builds seem to take even longer, at least in my experience. Sourcing materials, waiting on specialty trades, all that jazz... it adds up.
I’ve always wondered if lenders are just stuck in the past with these timelines, or if they’re banking (pun intended) on folks needing those extensions. Like, do they actually look at recent build data? Or is it just easier for them to keep the terms short and rake in the extra fees when reality hits? I get that they want to limit their risk, but it feels a bit out of touch with how construction actually works these days.
Curious if anyone’s had luck negotiating longer terms up front, especially for projects with more sustainable features or custom elements. Or is it just a universal struggle? Maybe it’s different in other regions—weather and permitting can be such wildcards. I’ve heard of some lenders offering 18 months as a starting point, but that seems rare.
Anyone else notice that green or energy-efficient builds seem to get less wiggle room from lenders? Or is that just my bad luck?
WHAT’S A “NORMAL” LENGTH FOR CONSTRUCTION LOANS THESE DAYS?
I swear, it’s like the banks know there’s no way you’ll hit that original deadline unless you’re building in a bubble.
That made me laugh because it’s so true. We did a custom build last year and even with a “simple” design, 12 months was a joke. Weather delays, permit hiccups, and just waiting on windows pushed us way over. Tried to get 18 months up front, but the lender wouldn’t budge—said it was “policy.” I’ve noticed the same thing with green features too. You’d think lenders would be more flexible since those builds are getting more common, but nope. Maybe it’s just easier for them to collect those extension fees...
WHAT’S A “NORMAL” LENGTH FOR CONSTRUCTION LOANS THESE DAYS?
Honestly, I keep wondering if banks have ever actually talked to anyone who’s built a house in the last decade. Twelve months might’ve made sense twenty years ago, but now? Between supply chain weirdness and inspectors being backed up, it’s like playing roulette with your timeline. I tried to push for 15 months on my last project—no dice. The bank guy just shrugged and pointed at his little chart like it was carved in stone.
What’s the logic here? Are they really that worried about us dragging our feet, or is it just easier for them to tack on those extension fees and call it a day? I get that they want some kind of end date, but real life doesn’t work like a spreadsheet. Especially with all these new building codes and energy stuff, which always seems to add weeks you didn’t plan for.
Has anyone actually gotten a lender to budge on the standard term lately, or is everyone just stuck playing deadline chicken?
WHAT’S A “NORMAL” LENGTH FOR CONSTRUCTION LOANS THESE DAYS?
I hear you on the timeline roulette. Twelve months is a joke now, unless you’re building a shed. My last build, I barely squeaked by at 13 months, and that was with me basically living at the site. The bank wouldn’t budge either—just kept pointing to “policy.” I get that they want to keep things moving, but it feels like they’re ignoring how unpredictable things have gotten. Has anyone tried going through a credit union or smaller local bank? Wondering if they’re any more flexible, or if it’s just the same old story everywhere...
