What’s a “normal” length for construction loans these days?
It’s wild how banks still treat everything like stick-built from the 80s, even when you show them all the data on prefab or SIPs. I’ve had similar pushback—no matter how tight my schedule looks, they just default to 12 months and won’t entertain anything shorter unless you’re basically paying cash. I get it, they’ve probably been burned before, but it’s frustrating when you know your process inside and out.
I had a project where the roof trusses were delayed three weeks because of a supplier mix-up. Didn’t matter that everything else was on track; the lender just shrugged and said, “That’s why we do 12 months.” It’s almost like they expect you to hit every possible snag, even if you’ve got a solid plan.
Curious if anyone’s actually managed to negotiate better terms by showing a track record of finishing early. Or is it just the same old story—unless you’re a big-time developer or have a long-standing relationship, you’re stuck with whatever they offer?
It’s almost like they expect you to hit every possible snag, even if you’ve got a solid plan.
You nailed it. Lenders are stuck in their ways, and honestly, I’ve tried everything—detailed Gantt charts, completion certificates, even photos of past jobs. Unless you’ve got a long history with them or serious leverage, they just won’t budge. It’s frustrating when you know prefab or SIPs can shave months off, but they still treat it like a wild card. Hang in there—at least you’re not alone in this.
Title: What’s a “Normal” Length for Construction Loans These Days?
Honestly, it’s wild how little trust lenders put in modern methods. I’ve seen projects with SIPs or modular builds finish way ahead of schedule, but the banks still act like you’re pitching some untested science experiment. It’s like they’re stuck in 1995. I get wanting to manage risk, but at some point, it just slows down innovation. Still, you’re right—having a track record helps, but even then, it’s a slog. Just gotta keep pushing the envelope, I guess...
Honestly, I’ve been running into the same thing lately. Even when you show lenders a schedule that’s way shorter because you’re using SIPs or modular, they still want to stick to the old 12-month (sometimes even 18-month) loan terms. Most of the time, I see construction loans set at 12 months as the “standard,” but if you ask for less, they just look at you sideways. It’s like they don’t want to believe you can actually finish faster.
Had a project last year where we wrapped up in 7 months using panelized walls, but the bank wouldn’t budge on their timeline. Ended up just sitting on the finished house waiting for the loan to convert. Frustrating, but I guess from their side, they’re just covering their bases in case something goes sideways.
I get why they’re cautious, but yeah, it does feel like they’re slow to catch up. Maybe in a few years, once more folks have a track record with these methods, things will shift a bit. For now, seems like 12 months is still the “normal,” even if you know you’ll be done sooner.
WHAT’S A “NORMAL” LENGTH FOR CONSTRUCTION LOANS THESE DAYS?
That’s been my experience too, and honestly, it drives me nuts. I’ve had lenders look at me like I’m trying to pull a fast one when I show them a 6- or 7-month build using SIPs or pre-fab components. They just don’t seem to trust the process, even with all the documentation and case studies out there showing these methods are legit.
A couple years back, I finished a duplex in under 8 months—thanks to modular panels and a really dialed-in crew—but the bank wouldn’t adjust the loan term. Ended up paying interest on money I didn’t need, just because their system can’t handle anything outside the “norm.” It’s like they’re stuck in this old mindset where every build is stick-frame and full of delays.
I get that risk management is their thing, but it feels like they’re penalizing innovation. Maybe once enough of us rack up short-term completions, they’ll start to budge... but for now, yeah, 12 months seems to be the magic number whether it makes sense or not.
