Raw Land + Need a Loan to Build

[Rusty Robinson]

Long time lurker, first time poster. I'll try to keep this short and concise. 

I own free and clear, 17 acres outside of Houston, TX. The county appraisal values the property at $200,000. Raw land, no structures.

I would like to build a small 2bd, 2ba house, under 1200 sqft. To be my primary residence. I want to use all my own subcontractors, tossing a construction loan out the window. Essentially I would like a loan for $75k to get all this done how I want. 

I have found a bank that preapproved me for the money using my property as collateral. My issue is that they are only offering an adjustable-rate loan. The terms: 180 month payout on either a 1yr, 3yr or 5yr adjustable-rate mortgage. 1yr @ 5.00% - 2yr @ 5.75% - 5yr @ 6.25%. 

Before I was hit with this I thought I had a pretty good idea of what I was doing. Should I finish the house within the first year and then go back to the bank and get a mortgage? Should I keep shopping banks? The adjustable-rate makes me nervous. 

Looking forward to reading your messages to help me over this hurdle. 

- Rusty