New Construction Loans

We'll help you build it

RBFCU offers one-time close construction loans with flexible terms, designed to help you finance the building of your new home.

These loans offer a short-term, fixed-rate construction period which converts to a permanent fixed-rate mortgage upon completion of construction. During the application process, RBFCU will require the borrower to provide a construction contract and schedule along with detailed plans/specs and a proposed budget for the construction project.

During construction, the borrower will make interest-only payments on a schedule that follows stages of the home's construction progress. When construction has been completed, the construction loan can be rolled over into a permanent fixed-rate mortgage loan. When you are ready to make the vision of your new home a reality, let our experienced mortgage team help you reach your goal.

To speak to the Mortgage Department, call 210-945-3300, select option 3, then option 2.

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Let us walk you through the construction loan process


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1. Get prepared

Building a home is a big commitment and you’ll want your finances to be in good condition before you start the process to ensure the best possible outcome. Gather your financial information, like recent tax returns, financial statements and pay stubs; your loan application will let you know what financial information is necessary. You should also review your credit score, take a look at your debt-to-income ratio and take other important steps to position yourself for receiving the best possible loan terms.

Click the button below to read our document on “Maintaining Your Financial Status and Credit Score” for tips to help guide you through the process.

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2. Decide what you can afford

Before you begin shopping for a builder, take a look at your budget and current expenses to determine what you can afford. You’ll want to evaluate your monthly incoming and outgoing funds to see where a down payment, closing costs and your new mortgage payment might fit in.

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3. Get pre-approved

Once you know how much home you can afford, complete the application for a pre-approval letter. The pre-approval will let builders know that you are a qualified buyer who is prepared to build a home.

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4. Find a builder

Now it’s time to find a builder to construct your new home. Make sure and do your due diligence in researching to find the right builder for you. Your builder will need to be approved for the construction program with RBFCU. Ask your loan officer to find out if a builder is approved or for a builder application package which will detail what is required of the builder to become approved for the program.

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5. Complete paperwork

You’ll complete the application process you started with your pre-approval by submitting your documents and continuing through the loan process. This may sound simple, but it can be a big undertaking, depending on your employment status, residency, etc.

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6. Finalize your loan

Our mortgage team will help you through each step of the loan process and make sure you know everything you need to know to close your loan with confidence.


Calculators

  • How much home can I afford?
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  • How much should I put down for a new home?
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  • How much will my mortgage payments be?
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  • Which is better for me: A 15-year or 30-year mortgage loan term?
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  • Should I pay points to lower my mortgage loan rate?
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FAQs

  • What does a construction loan include?
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    RBFCU offers a one-time, construction-to-permanent financing program for primary residences. The construction loan period is generally limited to 12 months and upon property completion, modifies into the permanent loan terms. Construction draws are coordinated with the member and builder based on a predetermined draw schedule for work performed prior to closing the loan. Loans are made directly to the member, not the builder.

  • Does my builder need to be approved if I want a construction loan?
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    Yes, RBFCU must approve the builder for a construction loan.

  • Do I have to own my own land to get a construction loan?
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    Yes, RBFCU construction loans are for new construction on property you own, not for construction being completed by a builder (in a new subdivision, etc.). If you are seeking to finance a loan of that type, you may want to consider a traditional mortgage loan. If you are seeking to make improvements to a property you already own, you may want to consider a home improvement loan or home equity loan.

  • How soon will someone from RBFCU contact me after I’ve submitted my mortgage application?
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    Once you submit your mortgage loan application for review, RBFCU will contact you within 24 hours, unless it’s a weekend application.

  • How long will it take to receive my pre-approval?
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    A pre-approval process will typically take within 24 to 72 hours based on the type of loan.


Still have mortgage questions?

Loans subject to credit approval. Rates and terms subject to change without notice. RBFCU mortgage loans are available only on property in Texas. Origination fee program not available for short term loans, FHA or VA loans. NMLS# 583215

Ask RBFCU