Developers/Builders: How buyers finance a new construction ?

[Justine Ade]

Hi everyone,

Trying to figure out a niche. My current plan is to buy a couple of duplexes in a new subdivision carved out by a developer. I want to use an FHA loan for one and a conventional loan for the other.

If I am looking to make a deal before the property is built, how would financing work? Will banks still allow for an FHA loan/conventional loans before the build? Or do I need a construction loan? Also - when is the capital needed? Before the build or do we close after it is built? Are there discounts buying before the property is built vs. the property already being on the market?

Sorry for these basic questions. Most of the discussions around new construction financing pertain to those who actually want to develop and hire builders. In my case, the developer already has a plot of land and floor plans - I just want to buy one of them. 

Any advice is appreciated.