Can I tap into equity on a new cons. home right after completion?

[Giselle Romero]

Long story short. Purchased the land with cash in 2020 for 60k. 

Put another 130k down on the actual build of the house.

Took out a 500k construction loans. Comps are about 800k.

Home is expected to be completed Feb-March. Which at that point I will need to take out another loan to pay off the construction loan. Can I request more than the 500k owed on the existing loan? I was considering using the funds for a pool but may just hold onto it to increase my liquid emergency funds. 

[Sanat Bhandari]

@Giselle Romero A construction loan such as this should be followed by permanent financing. Your lender should have informed you of the same.  

Assuming this is for a primary residence, you can get up to 80% of the project valuation. If the project valuation is at $800,000, then you should be able to get up to $640,000 for the same. 

In your example, on a $500,000 construction loan, you should be able to ask for an extra $140,000 in construction costs (that is, assuming a value of $800,000 after construction is done and if the numbers make sense)

Once the construction is complete, your lender should be able to do permanent financing on the property to pay off the construction loan