The construction term is generally 12 and up to 18 months. The construction phase is the period of time your home is under construction. Once your home is complete, the loan moves automatically to the permanent phase and end loan with payments of principal and interest. During construction your payments are interest only based on the average current balance.
In most cases a 12 month period is set up for the construction phase. For larger projects, 18 months can be set up. If you need less time the loan will move to the permanent phase once your construction is complete. Once it’s complete, the payment changes from interest only to full principal and interest.
Obviously circumstances arise. If more time is needed, a one- time extension can be obtained if requested.