Final answer:
The builder is usually responsible for construction phase financing, while the closing financing is typically the buyer's responsibility.
Step-by-step explanation:
The statement that the builder is responsible for both the construction phase financing and closing financing is generally false. Typically, construction phase financing is obtained by the builder or developer to cover the cost of materials, labor, and other expenses incurred during the construction of a new home. This type of financing is often provided through a construction loan. Closing financing, on the other hand, is usually the responsibility of the buyer, who will acquire a mortgage loan to cover the purchase of the completed property.
At the peak of the housing bubble, it was possible for many people to secure loans for both phases; however, those responsibilities in the financing process are distinct and usually handled by different parties.