If you're going to build, do NOT cheap out on the basic structure. Either wait till you can afford what you want, or forgo some interior finishes.

Don't cheapen out on the brick. You can save money by not having any fancy brick patterns done and by buying brick from the clay that is local to your area. In fact don't cheapen out on anything with the structure, electrical, plumbing, windows or HVAC of the home. Spend the money on things that are next to impossible or are very costly to change. You can cheapen out on cosmetics inside the house and easily upgrade when you are financially able to. On the inside I would get quality cabinets,and bath fixtures though. Counters, flooring, window treatments, appliances, lighting fixtures, furniture etc can easily be upgraded in the future.

Houses in my area are commonly done with brick and Hardie siding. Excellent advice above - build a solid structure and upgrade flooring, counters and fixtures in the future. Our house was a builder spec with basic Formica counters, carpet and vinyl. We have a house we can afford and made up grades over time. I would suggest you choose acceptable neutrals in these items so that you can take your time upgrading.

Why would you even consider it? You will be throwing your money out the window. You will not be happy and no future buyer will want it. Cheap screams cheap!

Can anybody answer my other question above? What material is the exterior facade (the black portion). I like the look of it.

How would anybody know? We're just looking at the same pixelated photo you are. It could be plywood, maybe exterior grade MDF. I doubt it's solid wood because of the width, but who knows? You could make it out of any suitable material.

Is it veneer? Veneer isn't a material; it's a way of finishing. The brick on that house is probably veneer--that is, it's not structural, it's just stuck on the outside of the structure. In my house (100+ years old), the brick is structural, with a stone foundation.