WHAT’S A “NORMAL” LENGTH FOR CONSTRUCTION LOANS THESE DAYS?
Interesting point about the shorter term pushing everyone to stay on track. I’ve had a couple projects where we tried to squeeze everything into 12 months, and honestly, it was a nail-biter. One time, weather delays nearly pushed us over the edge—ended up negotiating with the lender for a tiny extension, which wasn’t fun. I get the appeal of keeping pressure on the builder, but I wonder if that ever backfires? Like, have you ever seen corners cut just to make the deadline?
Curious too if anyone’s noticed lenders getting stricter lately. Last year, one bank insisted on 15 months minimum for a mid-sized infill project, saying they’d seen too many 12-month loans go sideways. Makes me wonder if the “normal” is shifting again or if it’s just regional quirks.
WHAT’S A “NORMAL” LENGTH FOR CONSTRUCTION LOANS THESE DAYS?
I get what you’re saying about the shorter terms keeping everyone motivated, but honestly, I think there’s a point where it just gets counterproductive. I’ve seen more than a few situations where crews start rushing the finish work just to hit the bank’s deadline, and the quality definitely takes a hit. One project a couple years ago, the client was so stressed about the 12-month loan that he was pushing subs to double up on trades in tiny spaces—just asking for mistakes.
I’m also not totally convinced that longer terms actually make people lazy, either. Most of the legit builders I know take pride in sticking to a schedule, no matter what the loan says. Weather, supply delays, permit holdups... sometimes you just can’t plan for everything. Lately, I have noticed lenders seem a bit more cautious—maybe it’s just the market, but I’ve had a couple banks suggest 14-16 months as the new normal. Feels like things are still shifting, honestly.
WHAT’S A “NORMAL” LENGTH FOR CONSTRUCTION LOANS THESE DAYS?
- Lately, I’m seeing 14-16 months too, sometimes even 18 if you push for it. Banks are definitely more cautious, but they’re also aware that supply chain issues and permit delays are still a thing.
- Shorter loans (12 months or less) just don’t make sense for most projects right now. Rushing finish work is a recipe for callbacks and warranty headaches.
- Most good contractors stick to their schedules regardless of the loan term. The real problem is when the timeline is unrealistic from the start.
- If you can, negotiate for a little buffer. It’s way less stressful for everyone, and the quality holds up better.
I’ve run into the same thing—my last project’s loan was set at 15 months, and even then, we were sweating the final inspections. The city dragged their feet on permits for weeks. I’d rather have a couple extra months than cut corners, especially with green certifications on the line. Anyone else notice banks asking for more detailed construction schedules lately?
Title: What’s a “Normal” Length for Construction Loans These Days?
Honestly, I’m starting to think “normal” doesn’t exist anymore. Ours was supposed to be 12 months, but between the city’s random delays and our builder’s hiccups, we barely squeaked by. The bank wanted a day-by-day breakdown, which felt a bit much for a single-family house. I get wanting accountability, but sometimes it feels like they’re just covering their own backs more than helping us out. I’d rather have a buffer than risk rushing things, especially with all the hoops for energy codes now.
