Question 1

Does Lubbock still charge roadway impact fees on new construction?

Accepted Answer

No. The city set all impact fees to $0.00 for all areas, effective September 8, 2025. Lubbock had adopted roadway impact fees in 2020 at 25% of cost to developers, collecting about $14 million over five years toward $26 million in roadway projects. In the state-required five-year review, the council voted 5-2 on August 18, 2025 to zero out the fee rather than renew it. That is a real, current advantage against metros like Austin or Fort Worth, where impact fees run five figures per house, but it is a council decision that can be revisited at a future budget cycle, so confirm the fee schedule at application time rather than assuming it holds for the life of your project.

Question 2

What does a Lubbock building permit actually cost on a spec house?

Accepted Answer

Budget roughly $0.15 per square foot for the building permit and $0.07 per square foot for each of mechanical, electrical, and plumbing. On a 2,000 square foot single-family build that is about $300 for the building permit and about $420 for the three MEP permits combined, under $750 of city permit cost total, before any engineering or planning fees. Commercial and apartment permits run $0.20 per square foot, with plan review priced at 25% of the building permit fee (first revision free). The minimum permit fee is $75, and starting work without a permit costs 200% of the permit fee at that site, so pull the permit before mobilizing. These are the FY2025-26 published rates.

Question 3

How long does plan review take before I can break ground in Lubbock?

Accepted Answer

Days to weeks rather than months, but treat that as a range, not a commitment. The only review-time figures we found come from a permit-expediting vendor rather than the city, and no published municipal shot-clock backs them up, so we are not going to quote you a day count. Build the slower end of a days-to-weeks range into your draw schedule and construction term, and confirm current review times with the city's building safety department before you set a hard start date.

Question 4

Wolfforth grew 42.4% in four years. Is that where the metro's building is happening?

Accepted Answer

Wolfforth, in the Frenship ISD corridor southwest of Lubbock, is the clearest growth submarket. Wolfforth grew from 5,606 residents in 2020 to 7,982 in 2024, up 42.4% in four years, the fastest-growing place in the metro over that span. Shallowater, to the northwest, is the other visible growth edge, and its school district carries a bond-heavy 1.2552 per $100 tax rate. Metro population overall has grown about 1% a year with no down year in the recent series, so this reads as broad-based demand rather than a single hot pocket. Confirm zoning and lot-level details on the parcel before you underwrite the exit.

Question 5

What should I know about property taxes while a Lubbock spec build is underway?

Accepted Answer

The tax rate depends on which school district the lot sits in, and the spread inside Lubbock city itself is meaningful. A Lubbock city parcel in Lubbock ISD totals about 1.77% combined; the same city rate paired with Frenship ISD runs about 2.06%, and with Lubbock-Cooper ISD about 2.07%, a roughly 30 basis point difference for identical city services. On a $215,000 property that gap is about $625 a year of carry. Investment property gets no homestead exemption and no homestead appraisal cap; the separate 20% circuit breaker on non-homestead property is set to expire December 31, 2026. Confirm the parcel's exact rate with the Lubbock Central Appraisal District, and take tax planning to your CPA.

Question 6

Does hail risk change how I should plan the build in Lubbock?

Accepted Answer

Plan the roof spec around it. Hail has been the top homeowners loss peril in Texas in 9 of the last 10 years, with $4.93 billion in paid losses in 2024 statewide, and large hail struck the Lubbock area as recently as October 2023. A local agency reports that a Class 4 impact-resistant roof can generate the largest single insurance discount available on a Lubbock policy, sometimes 20 to 30 percent, with roof age and class treated as primary rating variables. Lubbock is about 300 miles inland, so there is no TWIA windstorm program to plan around, and a 2% wind and hail deductible has become the common Texas standard. Building or spec-ing a Class 4 roof is a rehab and construction-cost line item that shows up directly in the eventual buyer's insurance quote.

Question 7

With impact fees at $0.00, how much of a Lubbock spec build is mine to fund?

Accepted Answer

Plan on about 15% of total cost, and the appraised value sets the ceiling. We fund up to 85% of cost and up to 70% LTV, whichever is lower. On a $400,000 total Lubbock project cost, that is up to $340,000 from us and $60,000 from you (400,000 x 85% = 340,000), drawn per the build schedule rather than funded at closing. Impact fees currently set at $0.00 and permits at $0.15 per square foot keep the cost side smaller here, so 15% of a Lubbock project is a smaller check than the same percentage elsewhere. Subject to underwriting.

Question 8

What weight does my credit carry on a Lubbock construction loan?

Accepted Answer

Less than it would at a bank, and there is no minimum score on this program. We do run credit, but a ground-up loan is underwritten on the land, the budget, and the finished value, not on your tax returns or pay stubs. Weaker credit is usually offset with lower leverage rather than a decline, and there is no hard pull to start. Subject to underwriting.

Question 9

Can a first-time builder finance a Wolfforth spec house?

Accepted Answer

Yes, though a track record changes the leverage. Experienced builders can access higher leverage within the program's 70% LTV and 85% of cost ceilings. If this is an early build for you, expect to sit lower in that range and put more of your own money in. We fund spec and build-to-rent either way, on 12 to 24 month terms. Wolfforth is where the metro's clearest growth is, so bring us the lot and the plan set. Subject to underwriting.

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