Depending on where and what you build, the answer can be different from one custom home to another. In some cases, Truland Homes may carry the construction loan. For a more customized loan, a construction loan may need to be obtained. The good news is that most mortgage companies are happy to accommodate your needs.
Earnest Money is the amount of money a builder collects in order to execute the contract and start the building process. 100% of that money is credited back to the buyer at closing.
No, but your mortgage company may require you to prove the ability to obtain that money prior to closing.