From what I understand for communities like you are talking about, you wouldn't typically need to use a construction loan. The builder would be a great source for information, but there are generally some down payment stipulations (I think it's a small percentage) for the builder to get started but a normal mortgage for the purchase.
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It is usually up to the builder if they want you to do a construction loan or not. I am building in a neighborhood where there are two different builders. Our Builder requires the use of a construction loan as long as they haven't broke ground or even started. On a spec home, or something that is in the process of being built, the construction loan can no longer be applied, so you can go with an FHA. That is what we did. We bought a home that was intended to be a spec, and they already dug a hole in the ground for the foundation. Because of that, we had to go with a typical FHA end loan.
I am a little weary with construction loans because you technically "close" before completion. The scare for me is, once they receive funds or a draw fromyour loan, they can take all the time they want. Besides, while the funds from your construction loan are supposed to fund "your" home, who is to say they aren't using your funds for materials on a house that sold before yours? With an end loan, they don't receive payment until the house is complete giving them incentive to finish in a certain period of time.
Maybe i'm a little over-cautious, but i'm glad we aren't doing a construction loan
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ccubedzx3 wrote:It is usually up to the builder if they want you to do a construction loan or not. I am building in a neighborhood where there are two different builders. Our Builder requires the use of a construction loan as long as they haven't broke ground or even started. On a spec home, or something that is in the process of being built, the construction loan can no longer be applied, so you can go with an FHA. That is what we did. We bought a home that was intended to be a spec, and they already dug a hole in the ground for the foundation. Because of that, we had to go with a typical FHA end loan.
I am a little weary with construction loans because you technically "close" before completion. The scare for me is, once they receive funds or a draw fromyour loan, they can take all the time they want. Besides, while the funds from your construction loan are supposed to fund "your" home, who is to say they aren't using your funds for materials on a house that sold before yours? With an end loan, they don't receive payment until the house is complete giving them incentive to finish in a certain period of time.
Maybe i'm a little over-cautious, but i'm glad we aren't doing a construction loan
Well I would hope you'd find a builder you like and feel comfortable enough with to calm those fears. 
And it's typically not in the best interest of the builder to take their time as they are responsible for the interest on the mortgage until construction is completed.
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