The IRC building code allows you to build you home an infinite number of different ways using a verity of materials. The traditional way of framing is called western platform framing. This entails building a floor on the foundation walls. Installing joists and floor sheathing. Wall framing; the walls are assembled on the deck of the floor, and then lifted up into place. Then the process repeats for additional floors. This type of framing is fast and cheap, it has some drawbacks:
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1.The code requires 8″ of separation between the outside ground line and any type of wood product. The top of decoration rock is called the top edge of the ground line. In Minnesota, Iowa and Wisconsin there will be many houses that are going to be rotting away in the rim joist area.
2. Look how the load of the floor and wall is putting all the weight on the outer edge of the foundation wall making it act like a hinge point, Having a uniform load on the total thickness of the foundation wall makes it 4 times stronger. When you back fill against the foundation with poor drainage soil with no way to remove the hydro static pressure (ground water), you have made an easy way to have your foundation wall to buckle. If you look you will see before it buckles it will bow or crack horizontally and or diagonally.
There is always a better way to build, in this photo the main floor walls are pushing down on the outer edge of the foundation wall and the floor is pushing down on the interior part as well as holding the wall from being pushed inward.