Builder financed construction is when the builder finances the construction of a new home or commercial building.

Builder financing is common in large developments where there is a single exclusive builder, where the new home is for a first-time homebuyer, or where the builder is a large national or regional builder. For example; those developments that you see have new homes for sale, they are generally builder financed.

Buyer financing is typically used to finance construction when the buyer owns their lot, when the builder is local and is not exclusively building in a given development; where the buyer is building a home with a personal design, or when the buyer is performing some of the work, such as paint and trim work.