“Prefab or not, they seem more focused on their own process than the actual build speed.”
Yeah, that’s been my experience too. Even when I finished a stick-built in under 8 months, the lender wouldn’t budge from their 12-month window. Tried showing them schedules and progress photos—didn’t matter. Only thing that helped was getting a local appraiser to vouch for the build method. Still, it’s mostly just jumping through hoops. If you’re planning something unconventional, pad your timeline just in case... banks don’t like surprises.
Honestly, I ran into something similar with my last project—a custom build with a ton of glass and steel. Even though the prefab elements sped things up, the lender just stuck to their standard 12-month loan. My advice: document everything, but don’t expect the bank to care much about your efficiency. I tried to get creative with progress reports, but in the end, it was all about ticking their boxes. If you’re dreaming up something unique, just budget extra time for paperwork headaches... they’re inevitable.
WHAT’S A “NORMAL” LENGTH FOR CONSTRUCTION LOANS THESE DAYS?
Had a similar headache with a hillside build last year—lots of custom stonework, and the weather didn’t exactly cooperate. Even though we finished framing ahead of schedule, the bank wouldn’t budge from their 12-month window. I tried explaining the unique challenges, but honestly, they just wanted their checklist done. In my experience, even if you’re ahead, lenders rarely reward efficiency. It’s almost like they expect delays and just bake it into the process... Paperwork always takes longer than you think, especially with anything out of the ordinary.
WHAT’S A “NORMAL” LENGTH FOR CONSTRUCTION LOANS THESE DAYS?
That sounds all too familiar. I’ve run into the same kind of brick wall with lenders when building anything custom or “non-standard.” They love their checklists and timelines, but real-world projects rarely fit that mold, especially if you’re dealing with high-end materials or tricky sites. Twelve months seems to be the standard answer I get too, even for bigger luxury builds that obviously need more time—especially if you’re importing finishes or waiting on specialty trades.
Funny enough, I had a project where we actually wrapped up the interiors way ahead of schedule, but then got stuck waiting on a custom glass order from Italy. The bank didn’t care about the progress, just the final sign-off. It’s like once they set their terms, there’s zero flexibility, no matter how efficient you are or how many curveballs come your way.
Have you ever tried negotiating an extension upfront? I’m wondering if it’s worth pushing for 18 months right out of the gate, even if you think you can finish faster. Seems like it’d save some headaches down the line if delays pop up (which they almost always do). Or is that just wishful thinking with most lenders? Curious if anyone’s had luck getting more wiggle room in their loan terms for custom builds.
WHAT’S A “NORMAL” LENGTH FOR CONSTRUCTION LOANS THESE DAYS?
You’re definitely not alone—those rigid timelines drive me nuts too, especially when you’re juggling custom finishes or international orders. I’ve found it’s worth asking for a longer term upfront, even if you think you’ll finish faster. Sometimes lenders will budge if you show them a detailed schedule with built-in contingencies. It’s not always a yes, but it’s easier to negotiate before you sign than to scramble later when delays hit. Honestly, I’d rather have the buffer and not need it than the other way around.
