You need to go with interim construction finance. Financing designed for construction on homes. It works in stages and you make draws (cash withdrawals) from the bank after each stage is completed.

You need a contractor and mechanic lien document need to be prepared by a licensed attorney. The documents consist of Mechanic Lien Contract between buyer and contractor; The mechanic lien note (between buyer and contractor) and then Note Transfer, Transferring the note from the Builder to the Bank that will finance the house when it is completed. (Whom ever is giving financing the construction for you) You will probably need too, the Affidavit of Completion, This is to be filed after the construction has been completed. This is normally prepared with the mechanic lien documents or by the title company that handles the transaction. You may need to see if there is a requirement for the builder is registered with your state. To make sure the builder is qualified.

Good luck!

Construction perm loan would be best.