Both loans for land and small scale construction are very difficult to obtain at the moment. Banks don't want to lend on land ever. You might check with a portfolio lender but they probably won't do it either. Maybe you can see if you qualify for a conventional mortgage and buy something already built. For what you're talking about you need cash and lots of it.

This is the Houzz Building a Home forum link

http://ths.gardenweb.com/forums/build

I would look for an affordable existing home. You can then work your way up.

Getting a loan can depend on where you are. In this area...small town....most folks go to local banks and compare rates. If you are trying to buy a home within your means you should have no problem getting a loan.

We are residential developers. When someone wants to buy a lot they typically find their builder who determines if their desired house plan would work on the lot that they prefer. If they want to go forward they generally go to a bank and get the loan for the lot and house at the same time. Of course this again depends on if the bank finds them to be qualified buyers.

Some people prefer to buy a home in a builder owned development....where the builder must build all of the houses there. In that case they would seek a mortgage on the entire package.

Buy an existing home for your first purchase. You need training wheels for home ownership before you jump into the difficulty and additional custom expense of building your own home. Renting DOES have it's advantages. Especially if you are not handy enough to handle the full responsibility of being the one responsible for everything that goes wrong. No more calling the landlord when a gutter stops up with leaves and floods the pantry. Either you fix it, or you pay a fortune for someone else to fix it. Home ownership costs way more than just the mortgage. You'll need that mortgage payment all over again for home maintenance and improvement. Start down that path with less ambitious goals for a first timer.

Talk to your banker and when you do have a lotalready chosen and a house plan to show them.I do agree first timers probably should look at already built with maybe some things you want to change over time