New build / Pre Sale home

[Wesley Mims]

I have been building new construction homes in my subdivision. I have been waiting to build another spec. home until we see what happens with the current real estate market. I have been approached by a buyer for a pre sale which I am happy to build. However, they don’t want to get a construction loan to build the home and would like for us to finance the build our selves. They are approved for a USDA loan and would get that loan depending on appraised value of the home and if their finances have not changed before they close. The buyer is a youth pastor.

My question is their any construction loans that would require them to shoulder more of the risk?

Or would anyone have a suggestion on some type wording I would need in the sale contact that would better mitigate me taking all the risk?

Thank you to everyone in advance for any help with this situation.