I’m seeing more lenders push for 12 months or less, but with all the supply chain delays and permit holdups lately, that feels unrealistic.
Yeah, I’ve noticed the same thing. What’s weird is, even when you try to build in a buffer, banks seem way less willing to budge if things go sideways. Has anyone actually gotten a lender to waive extension fees, or is that just wishful thinking? I keep hearing “it’s policy” but it feels like they used to be more understanding...
Has anyone actually gotten a lender to waive extension fees, or is that just wishful thinking? I keep hearing “it’s policy” but it feels like they used to be more understanding...
I’ve run into the same “it’s policy” wall lately. A couple years ago, I did have a lender waive a small extension fee when a project got delayed because of a city inspection backlog, but that was more the exception than the rule. These days, even with solid documentation about delays, banks seem to be sticking to their guns. I get that they’re managing risk, but it does feel like there’s less flexibility now.
From what I’ve seen, the only way to even get them to consider waiving fees is if you have a long-standing relationship or a really compelling reason—like something totally out of your control, with proof. Even then, it’s hit or miss. I wish I could say there’s a trick to it, but lately, it just seems like you have to budget for the worst-case scenario. Not ideal, but that’s where things are at...
I wish I could say there’s a trick to it, but lately, it just seems like you have to budget for the worst-case scenario.
That’s been my experience too, unfortunately. The days of a friendly underwriter making an exception seem long gone. Out of curiosity, how long were your original loan terms? I’ve noticed some lenders are tightening up and only offering 9-12 months, which feels short with all the supply chain delays. Has anyone actually gotten a longer term up front, or is that pretty rare now?
Title: What’s a “Normal” Length for Construction Loans These Days?
When I closed on mine last year, the lender gave me 12 months, no negotiation. I pushed for more because the builder warned about possible delays, but they just wouldn’t budge. They blamed “market volatility” and said their policy was to keep it tight so people don’t drag things out. Honestly, with the way things are moving lately, 12 months barely feels like enough—our windows alone took almost five months to show up.
A neighbor managed to get 15 months from a local credit union, but that was after some heavy back-and-forth and only because his builder had a long-standing relationship there. Seems like bigger banks are sticking to 9-12 months max unless you’ve got some serious leverage or a huge deposit. The irony is, delays aren’t really within our control these days... but lenders act like they are.
If you’re still shopping around, smaller local banks or credit unions might be your best shot for a longer term. They seem more flexible, especially if you’ve banked with them before. Just be ready for more paperwork and slower approvals—trade-offs everywhere.
In my experience, extensions after the fact are possible but come with extra fees or higher rates. Not ideal, but better than being forced into a permanent loan before construction is done. Wouldn’t count on getting more than 12 months up front from most places right now though. The landscape’s just changed too much since the pandemic started messing with supply chains and labor.
If anyone’s actually gotten 18 months or more recently without jumping through hoops, I’d be surprised. Maybe things will loosen up again eventually—but right now? It’s definitely rare.
Yeah, 12 months seems to be the new standard, at least with the bigger lenders. I’ve noticed the same thing—anything longer and you’re either paying extra or jumping through a bunch of hoops. It’s wild how much the supply chain issues have shifted the goalposts. I’ve had projects where just getting trusses delivered blew the timeline by months, and there’s really nothing you can do about it. Local banks do seem a bit more willing to work with you, but like you said, it’s a trade-off with slower approvals and more paperwork. I wouldn’t bank on getting 18 months unless you’ve got some serious pull or a really unique situation.
