WHAT’S A “NORMAL” LENGTH FOR CONSTRUCTION LOANS THESE DAYS?
I’ve been on the client side of this and honestly, I’ve seen both banks and builders drag things out. When we built our place last year, the bank gave us 12 months, which sounded reasonable at first. But once the project actually got going, every little change—especially anything “green”—seemed to add weeks. My partner wanted low-VOC everything and suddenly we were waiting for some special paint to ship from across the country. The builder didn’t seem surprised, but the lender was definitely not thrilled about extending the loan.
I get frustrated with how vague “eco-friendly” can be too. We thought we were being clear, but halfway through, our contractor was asking if we’d settle for standard insulation because the recycled stuff was backordered again. I don’t think banks are totally to blame for delays, but I do wish there was more transparency all around. It feels like everyone’s just guessing sometimes... especially when budgets and timelines are tight.
WHAT’S A “NORMAL” LENGTH FOR CONSTRUCTION LOANS THESE DAYS?
You nailed it—timelines are all over the place lately, especially with specialty materials. I’ve seen lenders stick to 12 months on paper, but in practice, most projects run 14-16 months, especially when you add in permitting delays and inspection bottlenecks. Banks don’t like extensions, but I haven’t seen many projects wrap up early, either. Curious if anyone’s actually finished on time with all this green stuff in play... I feel like “normal” is just a moving target now.
I feel like “normal” is just a moving target now.
That’s the truth. Last time I built, we had a 12-month loan and ended up needing two extensions—permits took forever and the inspector was always “booked up.” I wouldn’t bank on anything under 15 months these days, especially if you’re dealing with energy codes or specialty stuff. Banks grumble but they know the drill by now.
I wouldn’t bank on anything under 15 months these days, especially if you’re dealing with energy codes or specialty stuff. Banks grumble but they know the drill by now.
That lines up with what I’ve seen lately. The “normal” 12-month schedule just isn’t realistic anymore, especially for anything custom or high-end. Even if you’re organized, there’s always some new code or supply chain hiccup that throws things off. I remember thinking we’d be ahead of schedule last year—then the city decided to “review” our window specs for three weeks. Not sure who’s actually hitting those old timelines unless they’re building something super basic.
Banks do seem more flexible now, though. They complain, but at the end of the day, they want the project finished too. Just have to budget for those extra months and keep your expectations in check. It’s frustrating, but at least you’re not alone in it.
Even if you’re organized, there’s always some new code or supply chain hiccup that throws things off.
That’s been my experience too, and honestly, I’m skeptical that we’ll see those old 12-month cycles come back anytime soon. The codes keep shifting and cities seem to find new ways to slow things down. Out of curiosity, has anyone actually seen a lender push back hard on extending a loan past 18 months? I’ve heard stories, but I haven’t run into it myself. Wondering if banks are just quietly building in longer timelines now.
