Lowest Cost Construction to Permanent Loan - Nola Area

Have you decided on your builder?

I just closed on my construction loan through Hancock Whitney and it was a one time close.

We haven't decided on a specific builder yet but do have a few we plan on talking to.

Fifth District Savings Bank, no question they're the best all around. Cost, personal underwriting, well established relationships with building inspectors and closing attorney to keep costs low on the 1 close program they've built over decades. They practically invented the 1 close program locally and can't be beat.

They are so good at it they routinely have to weed out "fake" buyers who are really other banking competitors employees trying to steal the details of the program.

We used the program a few years ago and were very happy. It was our third house, you have to show up with your plans and get your GC approved if they don't already know him.

No, the banks are not all the same in terms of loan products, rates, costs or the entire construction process. You're building a house, which is much more complex and personalized than buying a commodity (a traditional 30 year mortgage) for an existing house.

Also, please don't be one of those posters who think it would be wise to learn to GC their own house on the fly.

Edit: Consider using your equity in the lot in lieu of a cash down payment if you already own the lot. But rereading your post, it isn't clear if you already own your lot.

If you plan on buying some things outside the builders preferred vendors you may to make sure the lender can do more than 3-4 draws during the scope of the project to reimburse you when you purchase items.

I am currently doing a one time close construction loan through GMFS. I shopped a bunch of local banks and they actually had the best deal once you consider only the one closing. I only have to pay for one appraisal, one set of title fee's, etc. Hancock Whitney has a similar loan but their origination was a good bit more than GFMS.

When I'm done with my construction, I call them and convert to permanent financing and prepay my escrows. Pretty damn simple.

I work at a building company and deal with banks a good bit.
The key that I'm glad to hear is that you have a down payment. Anything close to a jumbo, if you don't have a great downpayment, you get jacked on the interest rate. I saw one recently that couldn't find anything lower than 7% with 10% down on 500k with 750 credit and great income. So, the downpayment will be a big benefit to getting a great deal.
Hancock Whitney has a very good one time close program, but is hard to get approved and is picky about stuff. I find the fees to be a little high, but a good product.
SWBC is a mortage company that would require a construction lender, but has a good product and great fees. Their origination fee is under $1k where some places do 1%.
The best place I've ran across recently though is First Guaranty Bank. They have multiple branches and have the best rates. I had a customer recently bring them in for a mortage and it was a killer deal. I am trying to get set up with them now for more of my customers. They are based in Hammond, but have branches all over S. Lousiana. They do a one time that converts like Hancock Whitney, but better rates,fees, and conversion process.

You glossed over process, but understanding one time closings and how they switch over versus tradition construction then perm loans is a big deal. The one time closings have gotten very competitive in recent years and have came a long way. They all are a little different though as far as how the systems work. For construction lending you are seeing more and more one time closes.

I build houses in the New Orleans area and refer all of my customers to Fifth District. Their rates have been lower on non-jumbo loans than anyone else in the area and they have a float down option at multiple stages in the process. Not sure how their jumbo rates compare to others but their loan process is simple and easy and you can lock-in at closing instead of when construction is complete.