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Construction Loan - figuring land equity for down payment

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Construction Loan - figuring land equity for down payment

Hi, wanted to see if I can get some clarification on using our land as equity as down payment when applying for a construction to perm. loan and make sure I am understanding it correctly:


We are looking at building a home through a local builder for $182,000.  We bought our land approx. 4 years ago for $17,000 (7 acres) and we will have to pay off $10,000 with the loan.  We have since done upgrades such as driveway, rough grade and electric pole placement ($3,150.00 spent on those upgrades).  My lender will loan 85% of the cost to build with no pmi. 


182,000 + 17,000 (land) = $199,000 (cost to build)  *not sure if I use what I paid for land or land value today(?)

169,150 (85%)


169,150 (85% cost to build)

195,000 (total needed) = 182,000 (home) + 3,000 (closing cost) + 10,000 (land payoff)

25,850 - 7,000 (land equity) = cash to closing  $18,850.00 (??)


*I'm sure my land is worth more now but I have no idea what the bank will value it at so using what we paid.


Am I figuring this correctly ??


182000      169,150.00
17000   (195,000.00)
199000     (25,850.00)
 land equity        7,000.00
 cash at closing(?)


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