Lot loans finance land only and usually require higher down payments and shorter terms. Construction loans fund the build and release money in draws.
Common structures include buying land with cash then financing construction, using a lot loan first and construction later, or using a construction-to-permanent loan that combines both.
If you already own the lot, your equity can often be used toward the construction loan down payment.
Bottom line: the right structure can save time, interest, and closing costs.