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(?)