Looking to build a new home in spring of next year. Loan amount will be confirming. I will have over 25% equity in the property. I already own the land free of debt.

House will be built within 45 minutes of Fort Worth.

I started contacting local banks and some banks are the traditional two step loan process and others are the single close construction loan but the banks I have talked with thus far don't have a single close into a 30 year fixed. I have searched and it appears that RBFCU has a single close to 30 year option but I am not sure I can become a member of their credit union. Any lenders that you would recommend?

Reading on the internet it seems like the single close has a lot of advantages. Any input from the board on what has worked for others in similar situations.

With the inflation concerns, I would prefer to lock into a rate as quick as possible but I am not sure when that happens with a single close. On the traditional two step approach it is 60 days out from finish so that will be most likely spring of 2023.

Do they have what you're looking for?

SSFCU

I looked into a few options for single close this past year and most if not all I had to eliminate because they required a fixed price contract which I was not doing with my builder. Just something to ask/think about.

We eventually got a construction loan with Pinnacle Bank and we've been pleased with them in the midst of a rough year of building.

That surprises me. I don't know of construction loans that require fixed price. Cost plus has some different parameters such as reserve requirements but are certainly available.

Interesting on the type of construction loan. In my initial talks it was never discussed fixed versus cost + and whether that would make a difference. My build will be cost +. I don't know in today's environment how a fixed contract would work unless there is built-in adjustments throughout the contract as the prices changes almost weekly or the builder bids the fixed cost so high to build in adjustments throughout the year build.

As I continue to shop for loans I will ask the question about fixed versus cost + on a one step construction loan. Thus far I think I am looking at RBFCU to do the loan as it is one step construction to permanent loan and they can lock in on the front end a 30 yr fixed with no origination costs.

On fixed cost contracts we require a 5% contingency be part of the budget and contract.