WHAT’S A “NORMAL” LENGTH FOR CONSTRUCTION LOANS THESE DAYS?
You nailed it with the unpredictability—every project has its own curveballs. I’ve had “simple” bathroom updates get stuck for months just waiting on a single fixture. At the same time, I get why clients balk at long timelines. I usually try to be upfront: here’s the best-case, here’s the realistic, and here’s the “if the city decides to nap on your permit” scenario. It’s a balancing act, but I’d rather explain the buffer than have to apologize later. Still, I wish there was a magic number for these loans... but I haven’t found it yet.
WHAT’S A “NORMAL” LENGTH FOR CONSTRUCTION LOANS THESE DAYS?
I totally get the wish for a magic number. When we started our build, the bank suggested 12 months, but our contractor warned us it could easily stretch to 18. Curious—has anyone actually finished on time, or is the buffer always eaten up?
WHAT’S A “NORMAL” LENGTH FOR CONSTRUCTION LOANS THESE DAYS?
Curious—has anyone actually finished on time, or is the buffer always eaten up?
I’d love to meet the unicorn who finishes a build on time. We started with a 12-month loan too, thinking we’d be ahead of schedule. Nope. Between weather delays, permit hiccups, and the “oh, by the way, lumber’s backordered” moments, we chewed through the buffer and then some. Ended up needing a 6-month extension, which the bank thankfully didn’t make too painful.
Honestly, I’d say 18 months is more realistic these days, unless you’re building a shed or something. Even then, who knows. If you can swing a longer loan term upfront, it’s less stress later. The only folks I know who finished early either had a tiny project or got really lucky with zero surprises. For most of us, that buffer’s not just eaten up—it’s devoured.
- 12 months used to be standard, but lately I’m seeing more banks push for 15-18 months, just to cover all the unknowns.
- Delays are almost a guarantee—weather, labor, supply chain, inspections... it piles up fast.
- I’ve had projects where even the “buffer” wasn’t enough, and extensions meant extra fees.
- Curious—are folks finding lenders flexible on extensions, or are they tacking on higher rates/penalties now? I’ve seen both, and it can really mess with your budget.
WHAT’S A “NORMAL” LENGTH FOR CONSTRUCTION LOANS THESE DAYS?
Honestly, I’m surprised if anything wraps up in 12 months anymore. Last year, I had a mid-sized build that was supposed to be “safe” at 14 months—ended up needing two extensions. The bank was decent about the first one, just a small admin fee, but the second time they hiked the rate by half a point and tacked on a penalty. That ate right into our contingency.
I’ve noticed some lenders are getting stricter, especially after all the supply chain chaos. They’re less willing to be flexible unless you’ve got a long history with them or you’re bringing in repeat business. That said, I know a couple local outfits who’ll work with you as long as you keep the communication open and show progress.
Honestly, I’d rather pad the timeline up front and deal with a slightly higher origination fee than get squeezed at the end. Extensions always seem to cost more than you think, and the stress isn’t worth it. Anyone else feel like “normal” is just... longer now, and we’re all pretending it’s temporary?
