Twelve months is a joke now, unless you’re building a shed.
Yeah, I hear you. Twelve months used to be the standard, but these days, unless you’ve got every single trade lined up and zero weather delays, it’s just not realistic. I’ve seen some lenders start to offer 15- or even 18-month terms, but it’s usually only after a lot of back-and-forth and proof that your project actually needs it.
About credit unions and smaller banks—mixed bag, honestly. Some are more flexible, especially if you’ve got a relationship with them or can show a solid track record. But I’ve also run into “policy” walls there too. One local bank let a client extend by three months without much hassle, but another wouldn’t budge an inch, even when we had supply chain delays that were totally out of our control.
Curious if anyone’s managed to lock in a longer term right from the start? Or is it always a game of “ask for forgiveness, not permission” with extensions?
Title: What’s a “Normal” Length for Construction Loans These Days?
I’ve been through this circus twice now and both times, locking in anything longer than 12 months upfront felt like pulling teeth. The first time, the bank was super rigid—no extensions unless you could basically prove a tornado ate your framing crew. Second go-round, our credit union was more chill, but only after we showed them a mountain of receipts and emails about backordered windows.
What I’m still wondering is, do lenders ever just accept that stuff happens? Or is it always a scramble to justify every delay? I get that they want their money back on schedule, but it feels like they’re still living in 2015 when builds went quicker. Has anyone actually had a lender offer an 18-month term without making you jump through hoops? Maybe it depends on the region or how busy builders are... I’d love to hear if there’s some trick I’m missing, because I sure haven’t found it yet.
Honestly, I’ve run into the same wall—most lenders still default to 12 months, even though supply chain delays and labor shortages are just part of the landscape now. I’ve seen a few regional banks offer 15- or 18-month terms, but only if you’re building something pretty standard and have a squeaky-clean track record. It’s wild that they haven’t really adapted, considering how unpredictable timelines are, especially with green builds or custom features. Sometimes I wonder if they realize how much time goes into sourcing sustainable materials... it’s not like you can just swap in whatever’s on the shelf.
“it’s not like you can just swap in whatever’s on the shelf.”
Exactly! I swear, half the time I’m explaining to lenders why “eco-friendly insulation” isn’t just some fancy pink stuff from the hardware store. It’s like they’re stuck in 2015. I’ve had projects where a single custom window delay blew my whole timeline, and then the bank’s breathing down my neck. You’d think by now they’d have built in some wiggle room for all this unpredictability... but nope, still acting like every build is a cookie-cutter subdivision.
WHAT’S A “NORMAL” LENGTH FOR CONSTRUCTION LOANS THESE DAYS?
Is it really just the banks being rigid, though? I mean, I get that they’re not always up to speed on the latest materials or custom order delays, but isn’t some of this on the builders and designers too? Like, I’ve seen projects where the timeline gets blown up because someone decided to change tile at the last minute or suddenly wanted reclaimed wood from halfway across the country. Not saying lenders are perfect—far from it—but sometimes I wonder if we’re all just expecting them to be mind readers about how unpredictable things can get.
Also, do you think part of the problem is that “eco-friendly” still means something different to everyone? I’ve had clients who think it’s just about insulation, but then others want every finish and fixture certified. Maybe if there was more consistency in what we’re all asking for, lenders would catch up a bit faster... or maybe that’s wishful thinking.
