How Long Does it Take to Get a Construction Loan?
How long it takes to close construction loans ranges between 7 and 60+ days. Completed documents, a thoughtful plan, and fast lender speed up the process.
What Is a Construction Loan?
A construction loan is a short-term financing solution used to cover the costs of building or renovating a residential or commercial property. These loans are usually interest-only during the construction period and are typically replaced with permanent financing once construction is complete. However, if an investor intends to build a new property and sell quickly once construction is complete, there may be no need for longer-term financing.
How Long Does It Take to Get a Construction Loan?
The timeline to secure a construction loan varies depending on the lender type—bank, credit union, or private lender—and how well fleshed-out your application is. So, how long does it take to get a construction loan? On average:
Traditional lenders (banks/credit unions): 45–90 days
Hard money lenders (like Capstone Capital): Approval in 24–48 hours, with closings in as little as 5 days
Capstone Capital specializes in expedited processing, offering approvals in 24–48 hours and funding within days—not weeks. If time is a critical factor, this is a significant advantage. Do note, however, Capstone only serves investors and not borrowers who intend to live in the newly constructed property.
The Construction Loan Process Timeline
1. Pre-Qualification
Borrowers provide basic project and financial information. At Capstone Capital, this step includes a high-level evaluation of:
Project scope
Estimated costs
Borrower experience
Exit strategy
2. Loan Application
A more detailed application is submitted, including:
Construction budget
Project timeline
Site plans and permits
Contractor bids
Borrower background and financials
3. Loan Underwriting
The underwriting process evaluates the borrower’s ability to complete the project and repay the loan. With Capstone Capital, underwriting is streamlined and focuses on the asset and project feasibility more than credit score or income. Key approval criteria include:
Property Type: Residential or commercial, ground-up or remodel
Loan Size: From $100,000 to $5,000,000
Loan-to-Value (LTV): Up to 70% ARV (after repair value)
Borrower Experience: Especially important for complex projects
Exit Strategy: Clear plan to repay the loan—refinance or sell
4. Approval and Term Sheet
If approved, you’ll receive a term sheet outlining:
Loan amount
Interest rate
Loan term
Draw schedule
What Affects the Construction Loan Timeline?
Several variables can influence how long it takes to secure and close your construction loan:
Preparedness: Are your budgets, permits, and contractor info ready?
Property Type: More complex or commercial projects may require more scrutiny.
Lender Type: Banks are slower due to strict regulations. Private lenders like Capstone Capital are much faster.
Project Scope: Large-scale or multi-phase projects might require additional approvals.
How Long Can a Construction Loan Be Extended?
If you have a strong reason for requesting an extension, such as weather delays or permit holdups, the lender may extend for six or more months. If your reason for requesting an extension is taking a vacation during a critical period, your lender isn’t likely to approve it at all. Extension periods are completely up to your lender’s discretion.
Your original loan agreement may have included an option to extend after the initial term completes. If you do extend, be aware that loan parameters may change.
Why Choose Capstone Capital for Your Construction Loan?
Choosing the right lender can make or break your project timeline. Capstone Capital provides:
Fast approvals and closings
Flexible underwriting focused on project viability
Construction draws managed efficiently
Personalized support from experienced professionals in Texas
Whether you're building from the ground up or completing a major renovation, Capstone's hard money solutions give you the speed and reliability that traditional banks can’t match.
Ready to Get Started?
Get the funding you need, when you need it, with a lender that moves at your pace.
Contact Capstone Capital today to learn more about how we can help you build smarter, faster, and with confidence.
