To buy land and build a custom home near Clarksville, TN, you need to confirm that the lot can legally and practically support your home before you close. That means verifying zoning, setbacks, road access, floodplain status, utilities, soil and septic feasibility, easements, and the total site-development cost. You should also arrange financing and involve an experienced builder during your due-diligence period, not after you own the property.
The process is manageable when you treat the land purchase and home construction as one coordinated project. Here is the local roadmap.
Updated September 19, 2026.
1. Decide whether the lot is inside Clarksville or Montgomery County
Your first question should be: Who has jurisdiction over this property?
A lot inside the City of Clarksville follows city permitting and zoning procedures. A lot in unincorporated Montgomery County follows county requirements. The distinction affects:
- Zoning and setback rules
- Building permit applications
- Utility availability
- Driveway and road-access approvals
- Floodplain requirements
- Adequate Facilities Tax procedures
- Inspection and certificate-of-occupancy processes
Use the Clarksville-Montgomery County Regional Planning Commission maps to begin confirming the parcel’s jurisdiction and zoning district. Then review the recorded plat, deed, and any subdivision restrictions. A listing description is not a substitute for official verification.
For help comparing areas, you can also review Haus’s Montgomery County community information.
2. Evaluate the lot before making the purchase final
A beautiful tract of land may not be a buildable lot. Before closing, make your offer contingent on satisfactory land due diligence.
Check soil and septic feasibility
If public sewer is unavailable, the property will likely need a private septic system. In Tennessee, septic permitting and site evaluations are handled through the Tennessee Department of Environment and Conservation’s Ground Water Protection program.
Request the appropriate TDEC septic service and ground-water protection review. The evaluation may consider:
- Soil texture and drainage
- Slope
- Depth to bedrock
- Seasonal water conditions
- The proposed home and drainfield locations
- Required setbacks from wells, streams, springs, and property lines
Do not assume that a previous owner’s perc test guarantees approval for your planned home. The number of bedrooms, house location, driveway, pool, detached buildings, and site disturbance can affect the septic design.
If you will need a well, ask for a well-location review and understand that drilling cost and water yield can vary significantly. If public water is nearby, request written information about connection availability, tap fees, pressure, and extension requirements.
Verify floodplain and drainage conditions
Review the parcel through FEMA’s Flood Map Service Center, then confirm local requirements with the appropriate planning and building officials. A lot outside a mapped floodplain can still have drainage, creek, or stormwater challenges.
Ask your surveyor and builder to identify:
- Flood zones and base flood elevations
- Low areas and drainage paths
- Culverts or ditch crossings
- Existing stormwater easements
- Whether fill, elevation work, or special foundation design may be required
The safest time to discover a drainage problem is before you purchase the land, not after excavation begins.
Review easements and road frontage
Order a current boundary survey and title search. Look for:
- Utility easements
- Access easements
- Shared driveways
- Conservation restrictions
- Pipeline or transmission corridors
- Drainage easements
- Unrecorded or disputed access concerns
Road frontage is equally important. Confirm that the property has legal access to a public road and that the planned driveway location meets local sight-distance, culvert, and driveway-entrance requirements. If the road is maintained by TDOT, Montgomery County, or another agency, ask whether additional approvals or a road-damage bond may apply.
3. Confirm zoning, setbacks, and the actual building envelope
The acreage shown on a listing does not tell you how much of the property is usable for construction.
Confirm the applicable zoning district and ask for the current front, side, and rear setbacks. Then compare those requirements with:
- The lot’s width and shape
- The road right-of-way
- Recorded building lines
- Septic and reserve areas
- Drainage features
- Floodplain limits
- Utility easements
- Any homeowner association restrictions
A narrow or irregular lot may technically be large enough for a home but too constrained for your preferred floor plan, garage, driveway, septic field, and outdoor space.
Have your builder or designer create a preliminary site plan before you waive your land contingency. The plan does not need to be final. It should show whether the home, driveway, utilities, septic system, and required setbacks can work together.
4. Choose the right financing path
Your financing options will depend on whether you already own the land, how much equity you have, and whether your builder is approved by the lender.
Construction-to-permanent loan
A construction-to-permanent loan combines the construction phase and long-term mortgage into one financing structure. The lender approves the project based on the plans, specifications, builder contract, budget, borrower qualifications, and expected completed value.
During construction, payments are often based on the amount drawn rather than the full approved balance. At completion, the loan converts to a regular mortgage under the terms established by the lender.
Lot loan
A lot loan finances the land separately. This may be appropriate if you want to purchase the property now and build later, but you should understand the down payment, interest rate, repayment period, and whether the future construction loan can refinance or pay off the lot loan.
A lot loan can also create a second closing and additional costs.
Builder financing
Some builders offer preferred lenders or financing incentives. Compare the complete financial package rather than focusing only on a closing-cost credit or rate promotion. Ask about:
- Required deposits
- Upgrade pricing
- Change-order policies
- Rate-lock timing
- Appraisal procedures
- Whether the builder controls the lender relationship
- What happens if construction costs exceed the original budget
Speak with an independent lender as well as the builder’s preferred lender before choosing.
5. Understand how lender draws work
Construction lenders generally do not release the entire loan at closing. Funds are distributed through draws as construction milestones are completed.
A typical process looks like this:
- The builder completes an approved phase of work.
- The builder submits a draw request and supporting documentation.
- The lender orders an inspection to verify the completed work.
- The lender reviews invoices, permits, lien waivers, insurance, and the updated budget.
- Funds are released according to the draw schedule.
Draws may correspond to site work, foundation, framing, roofing, rough-ins, drywall, finishes, and final completion. Every lender uses its own process, so request the draw schedule and documentation requirements in writing before closing.
Ask specifically:
- Who requests each draw?
- Who pays for draw inspections?
- How long does approval usually take?
- Are materials stored on-site eligible for funding?
- Is retainage held until final completion?
- How are change orders handled?
- What happens if the inspection shows less progress than requested?
A mismatch between the builder’s cash flow and the lender’s draw schedule can create avoidable delays.
6. Compare Montgomery County and Clarksville permitting
For unincorporated Montgomery County, the county’s single-family permit checklist identifies documents such as:
- A final subdivision plat or recorded minor plat
- A site plan showing lot lines, setbacks, and the house
- Proof of required tax payment
- Road-damage bond or applicable TDOT documentation
- Septic approval, when applicable
- Square footage and estimated construction cost
- Contractor licensing and insurance information
You can review the Montgomery County single-family permit steps before meeting with your builder.
Inside Clarksville city limits, use the City of Clarksville permitting information and confirm how applications, inspections, fees, and utility documentation apply to your specific parcel.
Do not begin structural work until the required permits are approved. Your project may also require separate electrical, plumbing, and mechanical permits.
7. Budget for site-preparation costs people often underestimate
The house itself is only one part of a custom-home budget. Ask your builder for a separate site-development estimate covering:
- Land clearing and tree removal
- Grading and excavation
- Rock removal
- Retaining walls
- Soil correction
- Driveway and culvert installation
- Well drilling or utility extensions
- Septic design and installation
- Surveying and engineering
- Erosion and stormwater controls
- Temporary power and construction access
- Utility tap fees
- Permit and inspection fees
- Landscaping and final drainage work
Get written allowances for uncertain items. A vague “site work allowance” can shift substantial cost risk to you.
8. Select a builder and read the contract carefully
Choose a builder based on relevant custom-home experience, financial stability, communication, licensing, insurance, references, and completed projects, not only the lowest price.
Your contract should clearly identify:
- Plans and specifications
- Contract price and allowances
- Payment and draw procedures
- Construction schedule
- Start and completion conditions
- Change-order requirements
- Responsibility for permits
- Warranty terms
- Insurance coverage
- Lien-waiver procedures
- Delays caused by weather or material shortages
- Termination rights
- Dispute-resolution procedures
Have a qualified attorney review the agreement before signing. Your real estate professional can help coordinate the land transaction and identify questions, but should not replace legal or construction counsel.
9. What timeline should you expect?
A realistic custom-home timeline includes more than the construction period.
You may need several weeks for land due diligence, surveys, soil or septic review, preliminary design, lender approval, and contract negotiation. Permitting and final plans can add additional time. Once construction begins, many custom homes require several more months, with the final duration affected by weather, site conditions, inspections, material availability, change orders, and the builder’s workload.
Your lender and builder should provide separate schedules for:
- Land closing
- Design completion
- Loan closing
- Permit approval
- Site work
- Framing and enclosure
- Interior completion
- Final inspections
- Certificate of occupancy
- Move-in
Treat every date as a planning target unless the contract provides otherwise.
Haus expert perspective: Randy Whetsell
Randy Whetsell recommends treating the lot, financing, and home design as a single decision: “Before you fall in love with a piece of land, make sure your preferred home can fit the property, the lender can support the project, and the site costs fit your total budget.”
That approach is especially important near Clarksville, where buyers may be comparing city lots, subdivision parcels, and larger Montgomery County tracts with different utility, access, and permitting conditions.
Frequently asked questions
Can I buy land now and build later?
Yes, but confirm the lot remains buildable under current zoning, septic, access, and utility requirements. Financing a lot separately may involve different terms than a construction loan.
Do I need a perc test before buying land?
If the property may require septic, you should complete the applicable soil and site evaluation during your due-diligence period. A favorable result should be tied to your proposed home and system layout.
Is building in Clarksville or Montgomery County easier?
Neither is automatically easier. The correct process depends on the parcel. City and county offices have different procedures, and both require project-specific verification.
Can Haus help me find land and plan the next step?
Yes. If you are comparing land, new construction, or an existing home, begin with Haus’s buying-a-home resources, then contact the Haus team for a buyer-matched conversation.
Tell us your preferred area, approximate budget, desired acreage, commute needs, utility preferences, and whether you plan to use conventional, VA, or another type of financing. We can help you organize the right questions before you make an offer.
