Your borrower should have purchased a vacant dwelling policy with course of construction and builders risk endorsements, @Raj G. . 

Or you could take the land, get it "entitled", i.e. all the permits, plans, etc. approved, then sell it to a builder in a "ready-to-build" condition.  

One builder was fined an exorbitant amount.

I have been a home owner, and have owned rentals.I have educated myself with book, tapes (Carrolton Sheets lol ), seminars, Fortune builders, Rich Dad - Poor Dad, etc.

Hi Everyone,I have a client interested in building a new home on a private lot(not in a subdivision) he's married to the idea of staying in a specific location, so buying in to a new development is out the questions for him.I am looking for a builder in the area who can help guide me through the process he has the lot chosen and we confirmed with planning and development that he can indeed build the home he wants now we are looking to find out how much it will cost to build.He's looking to build2 Story home*4 to 6 Beds3 to 4.5 2,600 - 3,200 sq. ft3 Car Garage*round drive wayis looking to pay cash to buildPlease let me know if this is something you can help me with.

This is the first time I hear of vacant insurance policy or builder insurance.

I am looking to raise some funds for additional rehab costs or JV with another investor/builder to get this gem moving. 

I do a lot of new construction homes, and it is definitely different...and there is a lot of variance from builder to builder, and neighborhood as to what I can get a builder to agree to. 

The exception to this case would be some of the production builder floor plans that include an efficiency with "private" back door access on the bottom floor or a garage apartment as part of the new construction.I found some older duplexes farther towards West U area but the cost was way high in relation to the disrepair of the property due to land value.

Your architect should be able to refer you to some modular builders.