I used the Modest Swimwear Pattern from Fashionably Modest Patterns. I found this particular swimwear fabric on eBay (search for 'swimwear fabric')... but I have a few other lengths of swimwear fabric (nylon/Lycra) that I purchased from Fabric.com.
The pattern calls for 2.5 yds of 60" swimwear fabric, but with careful layout I can use about 1.5 yards... I'll have to draw up a sketch to explain. I'll do that later. And it says it needs 1 yd of swimwear lining fabric, but I use less than that, too.
Lycra swimwear fabric is surprisingly easy to work with. It's a little bit slinky so you have to keep that in mind, and be sure to use a ballpoint or universal needle (I use the latter).
And no, the swimdress is not loose-fitting... it just looks that way because one of the adjustment dials on my dressform broke, and I cannot adjust it to my size, LOL.