That was also our thought, to excavate the area for the floor slabs plus the terrace and then create a slope up to the original height. But we definitely did not want to build a basement or a recessed floor or something similar, but "only" a ground floor and an upper floor. A classic single-family house
The classic single-family house usually doesn’t work on a slope. But that’s why you can rearrange things a bit:
For example, already said it the way I would say it: basement and ground floor, without a cellar. Only that a bit, well a bit more is embedded in the slope, that would practically be a half-basement. You could use that for utility rooms.
You can also place the terrace on the south side, right?
So, you could rotate the house, make the driveway on the north side, and so on.
Would that be an option?